MICROFICHE COPY CONFIDENTIAL Report No. 10390-IN CONFIDENTIAL Report No. 10390-IN Type: (SEC) ZAGHA, R. / X80348 / D10095/ SA2CI INDIA SMALL SCALE INDUSTRY PERFORMANCE, EVALUATION AND AGENDA FOR REFORM VOLUME II APPENDICES June 24, 1992 SMAZL SCALE INDUSTRY PERFORMACE. EVALUATION AND AGENDA FOR REFORM VOLUME II APPanoreas Table of Contents Paue No. Al Statistical Appendix Statistics on Small Scale Industry in India . . . . . . . . . 1 List of Tables . . . . . . .. . . . . . . . . . . . . . . . . 8 STables . ... . . . . . . . . . . . . ... . . . . . . . . . . 11 A2 Incentives and Concessions Available to Small Scale Industry in India Introduction . . . . . . . . . . . . . . . . . . . . . . . . 60 Central Government Incentives . . . . . . . . . . . . . . . . 60 Financial Concessions . . . . . . . . . . . . . . . . . . . . 62 State Government Concessions . . . . . . . . . . . . . . . . 62 Annexure 1 - Refinance Interest Rate Structure . . . . . . . 67 Annexure 2 - State-wise classification of Incentives . . . . Annexure 3 - List of Items Reserved for Production by SSI . . . . . . . . . . . . . . . . . . . . . 78 A3 Procedural Formalities in the Establishment of SSI in the state of Karnataka . . . . . . . . . . . . . . . . . . . . . . . . 101 A4 industrial Extension Services: The Organizational Structure Introduction . . . . . . . . . . . . . . . . . . . . . . 111 Present Network . . . . . . . . . . . . . . . . . . . . . . . 112 Historical Development of Extension Services for SSI in India . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Annexure 1 - Assistance Required Towards Establishing . . . . a Small Scale Unit . . . . . . . . . . . . . . . 121 Annexure 2 - Financial Allocations to Industrial Extension Services . . . . . . . . . . . . . . . 125 Annexure 3 - Organizational Listing . . . . . . . . . . . . . 127 AS Delivery of Industrial Extension Services in Four East Asian Economies Introduction . . . . . . . . . . . . . . . . . . . . . . . . 128 The Hong Kong Productivity Council: Tasks and Activities . . . . . . . . . . . . . . . . . . 128 The China Productivity Center in Taiwan . . . . . . . . . . . 130 Information Services to SSIs in Thailand . . . . . . . . . . 133 Industrial Extension in the Philippines . . . . . . . . . . . 136 A6 Central Government Procurement of SSI Products Introduction . . . . . . . . . . . . . . . . . . . . . . . . 140 SSI Procurement . . . . . . . . . . . . . . . . . . . . . . . 141 Economic Costs and Benefits . . . . . . . . . . . . . . . . . 143 Summary and Recommendations. . . . . . . . . . . . . . . . . 145 Anhnexur'e 1 - Classification of Government Purchase, 1979,& 1990 . . . . . . . . . . . . . . . . . . .146 Annexure 2 - Items Reserved for Exclusive Purchase From Small Scale Industrial Units . . . . . . . 147 APPENDIx Al STATISTICS ON SMALL SCALE INDUSTRY IN INDIA Xatroduction 1. There are two major sources of information on small-scale industries (SSI) in India, aamely, the Small Scale Industry Organisation (SIDO) and Central Statistical Organisation (CSO). Each has its own strengths and weaknesses. Although representing a substantial share of the total SSI population, SIDO does not cover all industries. More importantly, its data suffer from sampling problems and are highly aggregated. On the other hand, CSO provides better coverage and is less aggregated, but its information is scattered among different surveys and is not readily available. As the results of some of these surveys were not published until very recently, researchers on India's SSI have hitherto resorted to one or more of C40's surveys as a proxy for the whole sector. In this report, however, we are able for the first time to piece together CSO's different surveys relating to SSI and produce what we hope to be a fuller account of this important sector. For completeness, we also present some of SIDO's more important statistics. I. Administratively, India's SSI is divided into seven industry groups: (1) handicrafts, (2) handlooms, (3) khadi, village and cottage industries, (4) coir, (5) sericulture, (6) powerlooms, and (7) small-scale industries which are residual. Mainly on account of simple tools and production process, the first five subsectors rre collectively called the "traditional" sector whereas the last two - powerlooms and residual small-scale industries - are known as the "modern" sector. For coordination of development programs at the central level, each of the subsectors has its own supervisory body or board, such as Khadi and Village Industries Commission, Development Commissioner for Handlooms, Development Commissioner for Handicrafts Board, Central Silk Board, Coir Board, and SIDO. The residual "small-scale industries" subsector is overseen by SIDO. Because it accounts for the important share of SSI, SIDO is often seen as representing the whole sector. In the present report, unless otherwise stated we include in our analysis both the traditional and modern sectors in line with CSO's statistical coverage. 3. For the purposes of administering tax and promotional benefits, there is a unified official definition of SSI which cuts across the different supervisory lines. Since 1954, when the Small Industries Development Program was introduced, the definition has undergone continual change. In 1955, SSI was defined as establishments with fixed investment of less than Re. 0.5 million, which employed less than 50 workers when working with power or less than 100 workers when not working with power. But the employment criterion was dropped in 1960, and SSI has since been officially defined solely in terms of investment in plant and machinery at original value. From time to time, the investment ceiling is revised upwards. In 1966, it was raised from Rs. 0.5 million to Rs. 0.75 million (or Rs. 1.0 million for ancillary units). These went up further to Re. 1 million and Rs. 1.5 million in 1975; Re. 2.0 million and Rs. 2.5 million in 1980; and the current levels of Re. 3.5 million and Rs. 4.5 million in 1985. New ceilings of Re. 6 million and Rs. 7.5 million were introduced in April 1991. -2- SIDO Data 4. First Census. The first attempt by SIDO to establish a database was nade in 1973/74 when it undertook an all-India census of the registered small- scale industrial units. Detailed information was collected from around 140,000 units (out of 258,000 expected) on number of units, employment, fixed investment, borrowings, inputs, output, and exports at the four-digit level of the National Industrial Classification. Some of the results were presented in the Handbcok of Statistics 1985. 5. For the purpose of updating the census data on a year-to-year basis, a revised registration procedure was introduced in 1975. As before, registration with SIDO remained voluntary, but new provision was made in the application itself to collect all basic information including product manufactured, employment, capacity, investment etc. Also, all registrants were requested to supply annual production returns to the Directorates of Industries in each state. 6. To keep track of production trends at the industry-group level, . production data have been collected on a quarterly basis since 1976 from establishments registered with SIDO, covering 356 proe-cts based on a 2% sample (2400 units) from the 1973/74 Census. From this, a we -d production index for the registered small-scale sector is routinely compu iing 1970 as the base year. Given the small sample size, the results T. neither precise nor representative, while the corresponding index for unregistered units is nothing but a very rough approximation. 7. To strengthen its database, SIDO is currently conducting a 20% sample survel in collaboration with the State/UT Directorates of Industries as a Central Plan Scheme to update the data collected during the 1973/74 Census, and also to collect additional information on mortality rates, requirement of raw materials, finance etc.. Two different rounds have been completed so far, covering units registered with the State/UT Directorates of Industries up to March 31 of 1981 and 1984 respectively. A brief report on the results of the first round has been published, but post-field work of the second round has been suspended to make way for the second All-India Census which began in 1989. 8. Second Census. Although the data collected during the first census continued to be periodically updated, it was found that the system was inadequate because it did not cover all the 2,400 products and that almost half the units sampled were either untraceable or had been closed down. It was therefore decided that a second all-India census of registered SSI units be conducted so as to obtain a more reliable frame of SSI units registered with the State/UT Industries Directorates up to March 31, 1988. The main objectives of the census are to: (a) obtain a dependable frame of functioning SSI units registered up to March 31, 1988 and falling under the purview of SIDO so as to enable state governments to identify SSI units to whom concessions/facilities are to be continued; (b) provide data by product group on capacity, production, employment, and other important characteristics of registered SSI units at All-India as well as State/UT levels; - 3 - (c) facilitate selection of sample units out of live unite frame for estimating monthly production of selected items/products manufactured in the small-scale sector for use in construction of the Index of Industrial Production by the Central Statistical organization; and for building up future estimates for products, industry groups, employment, investment, etc.; and (d) estimate the mortality rate of SSI units in various industry groups. 9. The census was to cover around one million registered SSI units, but in the event only around 800,000 were enumerated. The results are expected to be available by the end of 1.991. Until then, for reasons mentioned above, whatever information is available from SIDO will remain of limited value in formulating policy and monitoring performance of the SSI sector in India. Annual Survey of Industries (ASI) 10. Since 1959 various data collecting agencies such ,as the Census Organisation and the CSO/National Sample Survey Organization (NSSO) have made conscious efforts to accommodate some of.its data needs of SSI in their data collection programs. The ASI is the principal source of industrial statistics in India. It is conducted annually under the statutory provisions of the Collection of Statistics Act, 1953, except in the state of Jammu & Rashmir where it is conducted under the State Collection of Statistics Act, 1961. The field work of the survey is carried out by the Field operations Division (FOD) of the National Sample Survey organization (NSSO) through its network of regional and sub-regional offices located in different parts of the country. The processing of data and publication of reports are the responsibility of the Central Statistical Organization (CSO). However, the overall responsibility for the choice and selection of sample design and sample size, types and techniques of data collection, processing and tabulation lies with the Steering Committee on Industrial Statistics constituted by the Governing Council of the NSSO. 11. The ASI covers the entire country except the states of Nagaland and Sikkim and union territories of Arunachal Pradesh, Dadra & Nagar Haveli and Lakshadweep Islands and Mizoram. All the electricity undertakings engaged in the generation, transmission, and distribution of electricity registered with the Central Electricity Authority are covered under ASI irrespective of employment size. ASI covers all factories registered under the Factories Act of 1948, which employed 10 or more workers and using power or 20 or more workers and not using power on any day of the preceding 12 months. Certain services and activities like cold storage, water supply, repair of motor vehicles and other consumer durables like watches etc. are covered under the survey. (In the present report, we are concerned mainly with manufacturing activities and have thus omitted all services except repairs.) 12. The primary unit of enumeration is a factory in the case of manufacturing, a workshop in the case of repair services, an undertaking or a licencee in the case of electricity, gas and water supply undertakings, and an establishment in the case of bidi and cigar industries. The owner of two or more establishments located in the same state and belonging to the same industry group is, however, permitted to furnish a single consolidated return, a common practice among bidi and cigar establishments, electricity and certain public sector undertakings. - 4 - 13. The ASI frame is revised every four years by the Regional Offices of the FOD who laise with the Chief Inspector of Factories in the states. While names of the de-registered factories are removed from the ASI frame only once every four years, newly registered units are added every year. In enumeration, the units (often small-sized) that have been selected for the survey but are found to be non-existent are excluded from calculation. 14. For the purpose of the ASI, the factories in the frame are classified into two sectors, viz., the census and the non-cenaus (or sample) sectors. Until 1987/88, the census sector was operationally defined as factories employing 50 or more workers and using power or those employing 100 or more workers but not using power, while the remaining factories constitute the non-census sector. As from 1987/88, the census sector is redefined as units with 100 or more workers regardless ot power use. Once a factory is classified into census/non-census sector, its status is not altered for a period of four years, i.e., until the frame is revised, even though a change in employment might warrant it. 15. All the census units are eiumerated, while only half (one third since 1987/8P) of the stc:ple sector are enumerated each year, with the exceptions of: (1) idustries, which, at the three/fou'r digit level of NIC, do not total More than 50 factories in the whole country; and (2) factories located in relatively less industrialized states and union territories. Otherwise, individual units in the sample sector were enumerated every other year, based on a stratified uni- stage sample design.' The reference period for ASI 1984/85 was the accounting year of the factory ending on any day during the fiscal year 1984/85. 16. ASI provides results by employment size and investment value at the aggregate level, whereby SSI units may be readily distinguished. However, at detailed levels of two- or three-digit NIC no such breakdowns are available oxcept by special requests. Besides, the survey only coverp SSI enterprises which by virtue of their relatively large employment size are registered factories. (Some of these SSI factories are concurrently registered with SIDO.) But these represent only the larger units of SSI. For information on smaller units, i.e., those with less than ten employees and using power or less than twenty without power2, one has to consult two other complementary surveys also by CSO, namely Directory Manufacturing Establishment (DME) and Non-Directory I/ The strata wer.- formed by grouping factories within each state/union territory by industry group at the three/four-digit level of NIC. Thus in each state each industry group constituted a stratum. Within each str&tum the districts were first arranged in assending order of district codes and within each district the factories were then listed in descending order of their employment size. Thus arranged, the factories within each stratum were then allotted a running serial number. Those with odd serial numbers were surveyed in the first year, and those with even numbers in the second year of a cycle of two years. 2/ More generally, establishments that are not registered under the Factories Pft. -5- Manufacturing Establishment (NDME) surveys, the latter including own-Account Establishments (OAE). Dtrectory and Ron-Directory Manufacturing ustablishment Surveys 17. To obtain I :J'* mation on the "unorganised" non-agricultural sectors of the economy, the fir ..conomic ceisus of non-agricultural establishments was carried out in 1977 by s: Central Statistical Organisation in collaboration with the Department of Economics and Statistics (DES) .i the States/Union territoriaL. In the census, establishments were divided into three groups, namely (i) Directory Establishments (DE) which had six or more employees, at least one of whom was hired, and/or annual output/turnover/receipts of Rs. 0.1 million or more; (ii) Non-Directory Establishments (NDE), with less than six employees, at least one of whom was hired; and (iii) Own-Account Enterprises (OAE) if there ane no hired workers at all. 18. Based on the frame produced from the census, two rounds of sample surveys were subsequently conducted involving establishments that were not covered by ASI, i.e., DE, NDE, and OAE. The first round which took place in 1976/19 covered units in manufacturing and repair.services, while the second round which followed six months later was concerped with trade, restaurants and hotels, transport and services. In the first round (manufacturing and repair services), two separate surveys were undertaken, Non-Directory Manufacturing Establishment (NDME) survey which included OAE3 and Directory Manufacturing Establishment survey (DME). The joint NDME/OAE survey took place during July 1978 - June 1979 as part of the 33rd round of the National Sample Survey (NSS), while the DME was undertaken as a separate survey three months later by the Central Statistical Organisation in October 1978 - September 1979. 19. Conducted at the three-digit level of National Industrial Classification (NIC)4, the surveys covered the entire country excluding the rural areas of Nagaland and Chandigarth, Sikkim, Lakshadweep, Dadra & Nagar Haveli, some part of Jammu & Kashmir, part of Madhya Pradesh and Maharashtra, Manipur and Andaman & Nicobar Islands. In NDE and OAE, a combined total of 178,664 were enumerated, or about 2.2% of the 6ztimated total of 8.13 million. In the DME, a total of 34,878 establishments were enumerated, or 10.4% of the estimated total of 334,896. 20. Similar surveys were conducted five years later in 1984/85, based on the frame obtained from the Second Economic Census (1980). The second NDME survey along with OAE was undertaken during July 1984 to June 1985 as part of the fortieth round of the NSS and was followed three months latez by the second DME during October 1984 - September 1985. In these surveys, the output/turnover/receipts criterion that was used in the first round was dropped, and distinction between Directory and Non-Directory is now based on the number of employees only. That is, units with six or more employees, at least one of whom was hired on a fairly regular basis were classified as DE, including establishments manufacturing bidi and cigar other than those covered in the ASI irrespective of whether they were registered or not under the Bidi and Cigar Act. / defined as enterprises not employing hired workers at all. '/ except for handicrafts, handloom and khadi which were classified at the four-digit level for identification purposes. - 6 - Likewise, NDME is defined as those with five or less employees, at least one of whom is a hired worker; establishments with no hired worker at all are classified as OAE. 21. In the 1984/85 NDE (along with OAE survey, a total of 135,998 enterprises were canvassed, or 0.7% of the estimated total of 19.2 million. Of this, 75% were in rural areas and 25% in urban areas. Own-account enterprises accounted for 89% of the total. In the corresponding DME, a total of 31,739 units were interviewed, or 6.7% of the estimated total of 474,882. Of this, 37.7% were in rural areas and 62.3% in urban areas. The geographic coverage of the second surveyi was essentially the same as in the first. Data Limitations and alternative 22. None of the above data sets separately provide complete coverage of India's SSI. To recap, SIDO's data and censuses only cover units under its purview, i.e.. the "residual" SSI in the modern sector, and are thus incomplete in their coverage. Of those units under its purview, only about two thirds are reportedly registered; information on the rest is just a rough estimate. Moreover, the sampling frame from which data on the tegistered units are drawn is outdated, being based on th,.1973/74 census. Another drawback is that they are highly aggregated with virtually no detailed industrial breakdowns except for selected yers based on new registrants, which are not necessarily representative of the total population. The situation should improve once its second all-India census results become available. 23. ASI is also partial in its coverage as it only covers the larger spectrum of the SSI units that are registered factories. A further complication is that in the publicly available results these units cannot be distinguished from the rest of the sample except in the aggregates where the results are broken down by employment and investment size. No such distinction is made in industry- wise data. To get around this problem, some researchers have resorted to the "sample" portion of the survey, which used to be published separately until its last appearznce in 1982/83. Apart from their obvious datedness, the data from the "sample" roster have another serious limitation in that the SSI is necessarily defined in terms of employment size (49 or less if using power or 99 or less not using power), rather than in terms of investment value as it officially adopted, thus making it less useful from the policy potnt of view. 24. Another commonly used proxy for SSI's output is the value added of "unregistered/unorganised sector" at the two-digit level of NIC as reported in the National Accounts Statistics. Based on DE, NDE, and OAE5, theae represent net output of the unregistered units that are not covered by ASI. However, as these establishments cover mainly those with ten or less employees, they represent the smaller units of the SSI sector. It should also be noted that as these surveys are conducted at five-year intervals the national accounts figures for the unorganised sector for years other than 1978/79 and 1984/85 are essentially extrapolations based in some cases (e.g., chemicals) on growth rates of medium- and large-scale enterprises. 25. In order to obtain a more complete picture of India's SSI we have 3/ Adjusted for the slight difference in reference periods from ASI by assuming certain growth rates for the non-factory sector labor force. -7- combined at the two-digit level of NIC the results of DMZ, NDME, and OAE surveys with those of the SSI units from ASI. Div4ded into rural and urban areas, the results of DME, NDME, and OAE surveys are presented as they were with no adjustment made to the difference in accounting periods as is done in the national accounts. In the SSI portion of ASI, we distinguish between SSI proper and .SSI ancillary with no locational breakdown. In all surveys, we exclude all services except repairs as our focus is on manufacturing activities. rata presented for each of thn surveys include number of establishments, employment, capital, gross out value, inputs, value added, and exports for the whole sector. From these we derived technical ratios such as capital/labor, labor productivity, and capital productivity, which are also presented. Pending additional data requested, we are able at this writing to present data for only 1984/85. We are expecting data for 1978/79 and 1987/88, without which it is not possible to say much about the sector's growth over time at disaggregate levels. For reference purposes, we also reproduce some of the more important statistics from SIDO, which had been collected in the course of our study. References 1. "Handbook of Statistics: small Scale Industries in India", Development Commissioner Small Scale Industries, Ministry of Industry, Government of India, New Delhi, 1985 and 1989 issues; 2. "Annual Report 1988-89: Small Industries Development Organisation", ibid; 3. "Annual Survey of Industries: Summary Results for Factory Sector", Central Statistical Organisation, Department of Statistics, Ministry of Planning, Government of India, New Delhi, 1978/79 and 1984/85; 4. *National Accounts Statistics 1990", ibid; 5. "National Accounts Statistics: Sources and Methods 1989", ibid; 6. "Special Tabulation at Three-digit Level of NIC for SSI and Ancillary Units", (based on 1984/85 ASI), ibid; 7. "Thirty-third Round: July 1978 - June 1979. Tables with notes on survey of unorganised manufacture: Non-Directory Establishments and Own Account Enterprises", National Sample Survey Organisation, Department of Statistics, Ministry of Planning, Government of India, New Delhi; 8. "Fortieth Round: July 1984 - June 1985. Tables with notes on survey of unorganised manufacture: Non-Directory Establishments and Own Occount Enterprises", ibid, April 1989; 9. "Directory Manufacturing Establishments Survey 1978-79: Summary Results for Central Sample", Central Statistical Organisation, Department of Statistics, Ministry of Planning, Government of India, New Delhi; 10. "Directory Manufacturing Establishments Survey 1984-85: Summary Results", ibid. 8 STATISTICAL APPENDIX Al LIST OF TABLES Table 1.1 Basic statistics of small-scale industries of India, 1973174 - 1989/90 Table 1.2 Employment and investment of registerea SSI units by broad sector, 1983/84 Table 1.3 Profile of registered SIDO units, 1983 & 1985 Table 1.4 Distribution of SIDO's sample units by investwqnt and production size, 1982/83 Table 1.5 Distribution of 1982/83 STDO's sample units by investment & employment range Table 1.6 Distribution of SIDO-registerqd units by state as of end-December Table 2.1 Value of manufactured exports from small-scale sector by product group Table 3.1 Scheduled commercial banks' supply of credit Table 3.2 All scheduled zommercial banks' advances to SSI sector Table 3.3 Refinance assistance sanctioned (effective) to small-scale industries Table 3.4 Industry-wise trend in IDBI assistance disbursed to small-scale sector Table 3.5 Financial assistance by State Financial Corporations to SSI Table 3.6 Scheduled commercial banks' exposure to sick SSI units Table 4.1 Number of items reserved for exclusive manufacture by SSI Table 4.2 Distribution of SSI and non-SSI sick units by broad industry Table 4.3 Wholesale pricf 'ndices by broad subsector, 1982/83 - 1989/90 Table 5.1 Total number of SSI establishments by subsector, 1984/85 Table 5.2 Employment of SSI by subsector, 1984/85 Table 5.3 Average number of employees of SSI by subsector, 1984/85 Table 5.4 Concentration of productive capital of SSI by subsector, 1984/85 Table 5.5 Average fixed capital of SSI by subsector, 1984/85 Table 5.6 Capital-labor ratio of SSI by subsector, 1984/85 9 STATISTICAL APPENDIX Al (cont.) Table 5.7 Capital-labor ratio of SSI by subsector, 1984/85 Table 5.8 Gross output value of SSI by subsector, 1984/85 Table 5.9 Gross value added of SSI by subsector, 1984/85 Table 5.10 Gross value added per capital of SSI by suosector, 1984/85 Table 5.11 Average productive capital of SSI by subsector, 1984/85 Table 5.12 Relative capital productivity of SSI by subsector, 1984/85 Table 5.13 Relative capital productivity of SSI by subsector, 1984/85 (fixed capital only) Table 5.14 Gross output/capital ratio of SSI by subsector, 1984/85 Table 6.1 Value added from manufacturing - registered Table 6.2 Value added from manufacturing - unregistered Table 6.3 Value added from manufacturing - registered & unregistered Table 6.4 Principal characteristics by capital size, 1984/85 Table 6.5 Principal characteristics by employment size, 1984/85 Table 6.6 Principal characteristics by capital size, 1987/88 Table 6.7 Principal characteristics by employment size, 1987/88 Table 6.8 Principal characteristics by capital size, 1978/79 Table 6.9 Principal characteristics by employment size, 1978/79 Table 7.1 Average growth of number of SSI establishments by subsector, 1978/79 - 1984/85 Table 7.2 Average growth of number of SSI employees by subsector, 1978/79 - 1984/85 Table 7.3 Average growth of gross value added of SSI by subsector, 1978/79 - 1984/85 Table 7.4 Average growth of productive capital of SSI by subsector, 1978/79 - 1984/85 Table 7.5 Average number of employees of SSI by subsector, 1978/79 Table 7.6 Average fixed capital of SSI by subsector, 1978/79 Table 7.7 Capital/labor ratio of SSI by subsector, 1978/79 10 STATISTICAL APPENDIX Al (cont.) Table 7.8 Gross value added per capita of SSI by subsector, 1978/79 Table 7.9 Gross value added per rupee of fixed capital by subsector, 1978/79 Table 1.1 BASIC STATISTICS OF SMALL-SCALE INDUSTRIES OF INDIA, 1973/74 - 1989/90 1973/74 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 .. . .. * * * * * ------- --.-- - ------ ------- ....... ---.... ....... 1. No. of units (in *000) a/ 416 734 805 874 962 1059 1158 1242 1355 1464 1586 1712 1827 a. Registered SIDO units 159 334 392 448 523 607 687 757 855 950 1048 1159 b. Unregistered 257 400 413 426 439 452 471 485 500 516 538 553 2. Employment (in '000) 3970 6380 6700 7100 7500 7900 8410 9000 9600 10140 10700 11300 11850 I 3. Investment (in Rs. mittion) 22960 44310 55400 58500 62800 60000 73600 83800 95850 109750 126210 152290 181960 4. Production in Rs. million a. at current prices 72000 157900 216350 280600 326000 350000 416200 505200 612280 722500 873000 1064000 128250 b. at 1970/71 prices 51610 87970 100250 109060 118370 128000 141200 158100 178400 201870 227420 256750 289870 5. Value Added (Rs.miltion) 44896 52160 56000 66592 80832 97964 115600 139680 170240 210240 6. Exports (in Rs.Mit.) b/ 3930 10690 12260 16430 20710 20458 21640 25531 27532 36173 45663 57052 79904 Note: a. Excluding handlooms, handicrafts, khadl, village, and cottage industries, sericulture, and cofr. "Registered" means registered with State/UT Directorates of Industries. b. Export figures from 1986/87 to 1987/88 are provisional, including all SSIs (SIDO, non-SIDO, and others). Sources: (M) Annual Report 1988/89, Small Industries Development Organisation; (ii) Centre of Monitoring of the Indian Economy, Bombay; and (iii)SIDO. 12 Table 1.2 : EMPLOYMENT AND INVESTMENT OF REGISTERED SSI UNITS BY BROAD SECTOR, 1983/84 No. of Units Employment Investment 1. Food products 17.9 18.6 21.7 2. Beverages 0.7 1.9 0.6 3. Textiles 7.0 5.7 3.8 :4. Uood products 9.0 6.7 5.7, 5. Paper & Paper products 4.2 4.6 8.1 6. Leather products 9.9 4.1 2.3 7. Chemical & Chemical products 4.7 6.4 10.4 8. Rubber & Plastics 4.6 5.0 8.4 9. Non-metattic minerals 5.7 14.4 4.9 10. Basic metal products 2.3 4.3 5.2 11. Metal products 9.7 9.0 7.6 12. Machinery & parts (exct. electricals) 6.4 6.4 8.8 13. Electrical machinery & parts 2.5 3.1 4.6 14. Transport equipment & parts 2.6 2.4 2.0 15. Miscellaneous industries 1.6 1.7 1.4 16. Repairs & services 11.1 5.7 4.2 17. Storage - warehouse 0.1 0.2 0.7 Total 100.0 100.0 100.0 (687,295 units) (7.9 million) (Rs.68 b;t.) Source: SIDO. 13 Table 1.3 PROFILE OF REGISTERED SIDO UNITS, 1983 & 1985 1983 1985 (i) Average employment 6 5 (ii) Average investment in plant and machinery (Rs) 47790 46412 (iii) Average total fixed investment (Rs) 144431 236747 (iv) Percentage of units with less than 10 workers 91.. 93 (v) Percentage of units with less than 10 workers and with investment in plant & machinery less Rs 20000 66 62 (vi) Percentage of units with investment in plant & machinery less than Rs.20000 69 65 (vii) Percentage of tiny units 95 96 (viii) Industry group that provided maximum Beverages Non-metallic per unit employment mineral prod.a/ (ix) Industry group with maximum per unit Storage & Storage & investment in plant & machinery and Warehousing Warehousing b/ fixed investment (x) Percentage of units engaged in manufacturing 60 55 (xi) Percentage of units engaged in job work 19 21 Note: a/ 13 employees. b/ Rs. 1,062,800 in 1985. Source: Handbooks of Statistics of Small Scale Industries of India (1985 & 1989), Development Commissioner for Small Scale Industries, Ministry of Industry, New Delhi. Table 1.4 : DISTRIBUTION OF SIDO*S SAMPLE UNITS 8Y INVESTMENT AND PRODUCTION SIZE, 1982/83 INVESTMENT No. of Units % of Total Cumulative % I PR 0 DUCTI 0 N No. of Units % of Total Cumulative % plant & machinery (Rs. '000) (Rs. '000) ....*..**********.* ..********** ********** ***--------- ......----- ..-- ..-- . .- .... .......... --...........-- --- 0- 25 38715 53.4 53.4 0- 50 22750 31.4 31.4 25- 50 11484 15.8 69.2 50- 100 10298 14.2 45.6 50- 100 8530 11.8 81.0 100- 150 . *. 5937 8.2 53.8 100- 200 5875 8.1 89.1 150- 200 3878 5.3 59.1 200- 300 2569 3.5 92.6 200- 500 11994 16.5 75.6 300- 500 2291 3.2 95.8 500- 1000 6798 9.4 85.0 500- 1000 1917 2.6 98.4 | 1000- 1500 2896 4.0 89.0 1000- 1500 576 0.8 99.2 | 1500- 2000 1719 2.4 91.4 X 1500- 2500 397 0.5 99.7 | 2000- 4500 3152 4.3 95.7 2500- 3500 51 0.1 99.8 | 4500- 7500 1225 1.7 97.4 3500- 4500 24 0.0 99.9 | 7500- 15000 1020 1.4 98.8 Unclassified 107 0.1 100.0 | 15000- 20000 342 0.5 99.3 20000+ 519 0.7 100.0 Total 72536 100.0 Total 72528 100.0 Note: Based on 20% Sample Survey conducted by SIDO In 1982/83. Source: Handbook of Statitistics 1989 of Small Scale Industries in India, Development CommIssionef of Small Scale Industries, Ministry of Industry, New Delhi. 15 Table 1.5: DISTRIBUTION OF 1982/83 SIDOIS SAMPLE UNITS BY INVESTMENT & EMPLOYMENT RANGE Range- of Enptoyment Investment in .-.--.*****.******************.**************.-*** Plant & Machinery (Rs. 0000) 1 - 4 5 - 9 10 - 19 20 - 49 50 - 99 100+ Total < 51 Units 26470 15510 4422 1147 251 800 48600 Labor 67863 100252 56407 33423 16972 115126 390043 Capital 279960 312140 97821 25846 4706 14578 )5051 Output 6495918 10362996 5561249 1548575 537698 * 624982 25131418 51- 100 Units 1157 3828 2011 806 122 116 8042 Labor 3813 26923 26534 23024 8325 23188 111807 Capital 84464 287594 151658 63790 9573 9087 1 606166 Output 508650 2579236 3046398 1554723 325255 204000 8218262 101- 200 Units 300 1987 1745 1074 167 116 5389 Labor 1010 14657 23528 31022 10836 22998 104051 Capital 44712 293620 262403 164294 25595 18335 808959 Output 168314 2192001 3207303 2860686 705510 397242 9531056 201- 300 Units 88 600 628 743 121 88 2268 Labor 298 4406 8655 22030 8426 15271 59086 Capital 21694 152039 159213 188943 31154 22302 575345 Output 174872 605194 1405381 2130776 622540 1152410 6091173 301- 400 Units 28 240 376 432 121 62 1259 Labor 96 1757 5300 13293 8657 10346 39449 Capital 10031 85660 134257 153477 43334 22021 448780 Output 26513 279748 574492 1561729 571196 1399168 4412846 401- 500 Units 14 168 185 315 110 39 831 Labor 44 1265 2661 9921 7605 4956 26452 Capital 6493 78257 85069 143979 50374 17865 382037 Output 3594 226911 362966 953826 894890 384675 2826862 501- 600 Units 5 89 122 222 60 24 522 Labor 16 668 1815 7243 4363 3582 17687 Capital 2961 49901 67656 123603 32777 13601 290499 output 685 114577 396423 962530 378552 124892 1977659 601- 700 Units 4 55 88 170 52 37 406 Labor 16 409 1278 5352 3743 7004 17802 Capital 2598 36330 57711 112185 34320 24827 267971 Output 652 52866 176006 506587 277579 295255 1308945 701- 750 Units 1 21 44 60 44 18 188 Labor 4 153 612 1842 3074 3380 9065 Capital 740 15377 32169 43560 32281 13139 137266 Output 200 197458 54470 295123 391701 326488 1265440 16 Table 1.5: DISTRIBUTION OF 1982/83 SIwo'S SAMPLE UNITS BY INVESTMENT & EMPLOYMENT RANGE (cont.) 751- 1000 Units 10 50 -138 290 146 84 718 Labor 23 384 1990 9217 9957 14767 36338 Capital 9388 44249 120322 256580 129016 72303 631858 output 92730 107850 438968 1182483 1396861 1048014 4266906 1001- 1500 Units 14 38 66 202 114 80 514 Labor 47 285 908 6708 7844 13801 29593 Capital 16516 46559 81383 247291 140304 103029 635082 Output 21700 58941 176343 1372084 835732 833297 3298097 1501- 2000 Units 13 14 a 103 71 71 295 Labor 33 111 367 3552 5105 13104 22272 Capital 24816 22320 39727 183642 123783 125104 519392 Output 9122 30099 67916 679074 608174 1074106 2468491. 2001- 2500 Units 3 2 3 12 29 18 67 Labor 8 18 42 408 2287 4482 7245 Capital 7209 4239 6570 26978 69285 40331 154612 Output 412 1649 2362 215224 579491 394206 1193344 2501- 3000 Units 3 5 6 7 0 8 29 Labor 7 29 91 249 0 2236 2612 Capital 9000 14600 17221 19103 0 22204 82128 Output 93 1111 8223 92530 0 129776 231733 >3001 Units 5 2 5 6 4 16 38 Labor 12 16 62 186 284 5320 5880 Capital 19510 6600 21010 21530 15986 57282 141918 Output 665 224 23084 84948 33672 221758 364351 Not reported Units 1970 978 220 63 87 52 3370 Labor 5524 6165 2872 1970 5647 5042 27220 Capital 82607 115311 66184 19966 431707 29022 744797 Output 1425797 582852 140786 65645 725109 102860 3043049 Total Units 30085 23587 10084 5652 1499 1629 72536 Labor 78814 157498 133122 169440 103125 264603 906602 Capital 622699 1564796 1400374 1794767 1174195 605030 7161861 Output 8929917 17393713 15642370 16066543 8883960 8713129 75629632 Source: Handbook of Statistics 1989 of SSI in India, DCSSI, Ministry of Industry, New Delhi. 17 Table 1.6 : DISTRIBUTION OF SIDO-REGISTERED UNITS BY STATE AS OF END-DECEMBER 1983 1984 1985 1986 1987 1988 1. Andhra Pradesh 38530 43574 49142 53354 60295 70149 2. Assam 4878 5773 6543 7362 8727 10210 3. Bihar 33333 37852 44309 46435 53428 59886 4. Guiarat 40004 44606 48733 53433 58958 65553 5. Haryana 36474 37045 44204 51370 56885 61229 6. Himachal Pradesh 6406 6883 7486 8067 8506 9336 7. Jammu & Kashmir 11433 12013 13267 14521 17200 18700 8. Karnataka 28214 35050 42359 49462 56710 62534 9. Kerala , 23678 26464 29630 30744 . 27828 30178 10. Madhya Pradesh 69501 80739 93198 107211 122274 138729 11. Maharashtra 35226 38542 41040 45227 49831 54610 12. Manipur 4140 2594 3157 4220 4830 2892 13. Meghalaya 435 469 571 643 762 1003 14. Nagaland 361 374 395 431 471 509 15. Orissa 11592 12474 13319 14120 15093 16061 16. Punjab 58724 62236 69753 77831 86521 96519 17. Rajasthan 41144 43048 47861 52764 54462 56761 18. Tamil Nadu 43988 49138 59756 68846 76836 86499 19. Tripura 1715 1400 2062 2392 3136 3523 20. Uttar Pradesh 58874 73166 88126 105746 124336 145797 21. Sikkim 45 50 66 78 105 115 22. West Bengal 113802 117117 120692 125057 128488 131656 23. Arunachal Pradesh 262 246 262 213 278 374 24. Goa 2596 2862 3123 3410 2944 4433 25. Mizoram 539 628 826 1191 1566 1866 26. Andaman & Nicobar 189 244 340 424 487 537 27. Chandigarh 1620 1782 1997 2135 2277 2401 28. Dadra & Nagar Haveli 167 192 209 217 238 272 29. Delhi 17981 18904 19957 21240 22434 23817 30. Lakshadweep 0 0 0 0 0 0 31. Pondicherry 1220 1389 1595 1840 2102 2380 32. Daman & Diu 224 238 265 290 245 246 Total 687295 757092 854843 950334 1048253 1158775 Source: Annual Report 1988/89, Small Industries Development Organization, Ministry of Industry. 18 Table 2.1: VALUE OF MANUFACTURED EXPORTS FROM SMALL-SCALE SECTOR BY MAJOR PRODUCT GROUP (in current Rs. mittfon) 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1. Engineering goods 3180.0 3400.0 3210.0 3491.0 3110.0 3580.0 3150.0 4000.0 6180.0 (32.7) (29.3) (30.0) (30.4) (31.1) (31.1) (28.5) (25.2) (26.3) 2. Basic chemicals 593.4 996.2 1125.0 1413.3 1335.2 2183.7 3312.0 6811.0 11761.0 (19.4) (32.4) (27.3) (31.3) (28.2) (38.9) (42.3) (54.6) (55.5) 3. Chemicals & allied products 243.0 243.9 188.2 255.8 261.9 261.5 602.3 846.9 974.3 (11.6) (10.5) ( 8.0) ( 9.0) ( 8.3) ( 8.7) ( 5.9) ( 5.3) ( 4.4) 4. Plastic products 275.5 321.6 339.3 206.0 180.2 143.5 165.1 387.7 481.7 (44.5) (51.3) (66.1) (28.9) (26.8) (21.3) (25.8) (30.1) (27.9) 5. Leather & Leather products 3721.2 3581J6 3605.9 3619.2 4571.1 7073.9 9560.7 12206.2 15225.3 (89.5) (89.6) (86.7) (62.0) (69.0) (76.0) (76.8) (75.9) (73.0) 6. Marine products 2581.4 3321 3425.5 3598.2 3656.7 4256.7 5008.3 5599.8 5712.8 (90.3) (91.9) (91.8) (93.6) (91.9) (92.4) (94.3) (93.7) (90.0) 7. Processed foods 1430.7 1250.6 884.5 1520.0 1570.0 1790.0 2100.6 2631.0 3087.5 (53.5) (49.8) (43.5) (50.0) (55.0) (60.0) (60.5) (63.1) (65.0) 8. Wootten garments & knitwears 839.8 720.0 479.0 551.6 558.5 537.0 597.2 696.8 864.0 (100.0) (100.0) (100.0) (82.1) (80.1) (80.8) (80.0) (80.0) (80.0) 9. Sports goods 298.9 294.6 275.5 289.1 279.0 283.8 305.0 381.1 548.5 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) 10. Cashew 1248.5 887.4 1045.5 1481.7 1646.5 2366.4 2379.8 2468.5 3159.2 (66.0) (66.2) (70.0) (81.5) (76.0) (70.5) (72.8) (88.2) (87.1) 11. Ready-made garments 6028.2 5662.8 6611.6 8534.7 9865.3 13533.0 17995.8 20502.5 31249.5 (90.0) (90.0) (90.0) (90.0) (90.0) (90.0) (90.0) (90.0) (90.0) 12. Rayon & synthetic products 29.6 27.0 59.6 69.4 41.2 44.8 62.2 89.9 117.1 (19.5) ( 7.6) (20.4) (30.5) (22.4) (23.3) (21.4) (13.5) ( 7.7) 13. Processed tobecco,snuffs & bidf 58.6 84.2 149.2 116.7 94.9 61.2 152.3 116.4 197.9 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) 15. Others, of which a. Spices, ofts & oLeoresins 36.3 47.9 57.3 87.1 133.9 121.2 125.8 156.5 185.6 (70.8) (61.7) (71.5) (64.4) (72.3) (63.9) (65.0) (66.6) (65.0) b. Lac 141.0 130.4 136.1 297.3 386.7 242.6 146.1 168.8 159.6 (90.0) (100.0) (100.0) (100.0) (93.6) (94.1) (87.9) (88.5) (89.7) TOTAL 20706.1 20969.2 21592.2 25531.1 27691.1 36479.3 45663.2 57063.1 79904.0 a. as X of manufactured exports 44.5 44.2 40.4 39.3 39.8 43.9 39.1 35.5 36.4 b. as % of total exports 27.2 27.1 25.3 25.1 25.7 29.3 29.0 28.1 28.9 Note: Figures in parenthesis represent percentage shares of correspondirg total exports. Source: (i) Export Promotion Councils and (if) Ministry of Commerce (D.G.C.I.S.) 19 Table 3.1: SCHEDULED COMMERCIAL BANKS' SUPPLY OF CREDIT Total Amiount Credit Credit As end of Outstanding Outstanding Outstanding Outstanding March Credit ALL Industries To SSI a/ To Non-SSI (Rs.mit.) (Rs.miL.) Rs.miL.) as X of (Ro.miL.) as % of (1) (2) * (3) (3) (3) 1982 291620 150$60 (100%) 39010 25.9 111550 74.1 1983 344910 177620 (100%) 44860 25.3 132760 74.7 1984 404540 203760 (100%) 54120 26.6 149640 73.4 1985 479560 225510 (100%) 66120 29.3 159390 70.7 1986 552130 269860 (100%) 78160 29.0 191700 71.0 1987 625690 304640 (100%) 91080 29.9 213560 70.1 1988 702600 359730 (100%) 108200 30.1 251530 69.9 1989 856780 452850 (100%) 131270 29.0 321580 71.0 Note: a/ all SSI units, registered and unregistered. Source: Reserve Bank of India. 20 Table 3.2: All SCHEDULED COMMERCIAL BANKS' ADVANCES TO SSI SECTOR As % share of: Total SSI Sector b/ Total Total --.-.------------.. As on the -----------o------ Priority Bank Total Total last Friday No. of Amount Sector Credit Priority Bank of December Accounts Outstanding Advances c/ Sector Credit ('000) (Rs.Mil.) (Rs.Mil.) (Rs.Mil.) Advances (1) (2) (3) (4) (5) (3)/(4) (3)/(5) 1981 961 39531 108029 290913 36.6 13.6 1982 1050 44643 123424 342296 36.2 13.0 1983 1244 53894 148819 412922 36.2 13.1 1984 1455 65372 183299 462956 35.7 14.1 1985 1642 78293 216314 528421 36.2 14.8 1986 1863 91273 252241 603120 36.2 15.1 1987 a/ 2171 101663 278100 613245 36.6 16.6 1988 (June)a 2357 108702 292299 639502 37.2 1.7.0 Note: a/ Data relate to public-sector banks only. b/ Includes all SSI units, registered and unregistered. c/ Comprising agriculture, SSI, setting up of industrial estates, road and water transport operations, retail trade, small businesses, professionals and self-employed persons, educational, housing, and construction loans. Commercial banks are legally required to lend 40% of their funds to these activities. Source: Reserve Bank of India. 21 Table 3.3: REFINANCE ASSISTANCE SANCTIONED (EFFECTIVE) TO SMALL SCALE INDUSTRIES (in Re. million) SFCs SIDCs/SIICs BANKS TOTAL Year **...*.****** .----. -. ************************ ***************.***.**** -. --------. -. --------- (July-June) No. of Amount No. of Amount No. of Amount No. of Amount Applications Sanctioned Applications Sanctioned Applications Sanctioned Applications Sanctioned 1981/82 24032 2079 185 33 16147 637 40364 2749 1982/83 23381 2558 199 73 17744 . 735 41324. 3366 1983/84 10269 2276 217 148 12413 730 22899 3154 1984/85 17266 3410 340 190 22583 1528 40189 5128 1985/86 15918 4856 724 347 30957 1510 47599 6713 1986/87 16224 6636 992 450 37057 2144 54273 9230 1987/88 18806 7540 784 580 33574 2767 53164 10887 Note: SFC - State Financial Corporation; SIDC - Small Industry Development Corporation; SIIC - State Industrial Investment Corporation or State Industrial Development Corp. Source: Industrial Development Bank of India Table 3.4: INDUSTRY-WISE TREND IN IDBI ASSISTANCE DISBURSED TO SMALL-SCALE SECTOR (in Rs. million) 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1. Food manufacturing (inct.sugar) 35 61 73 91 126 77 86 142 204 283 372 505 528 730 793 2. Textiles (including jute) 13 22 35 43 54 96 118 161 304 368 411 407 588 596 664 3. Paper and paper products 3 7 14 16 19 29 21 33 68 73 35 58 82 85 95 4. Rubber and rubber products 4 11 14 15 13 18 13 26 89 104 132 142 119 120 156 5. Basic industrial chemicals 3 3 9 13 13 15 8 61 16 37 37 17 131 31 116 6. Nisceltaneous chemicals 13 29 56 97 76 90 99 75 261 329 365 382 520 587 604 7. Fertilizers 1 1 3 3 5 1 2 2 3 16 9 8 1 15 27 8. Cement 0 0 1 1 3 4 3 13 7 11 11 40 105 119 119 9. Basic metals 6 10 8 21 24 11 28 40 109 178 93 80 112 164 208 f 10. Netal products 22 35 66 70 61 72 46 127 289 342 358 444 480 494 392 11. Machinery 10 12 22 20 22 59 65 85 195 253 269 204 136 165 215 12. Electrical machinery 9 11 24 i0 29 39 30 58 92 125 183 147 157 279 243 13. Transport equipment 5 11 16 20 22 19 20 23 58 82 92 90 88 103 111 14. Electricity generation 0 0 0 0 0 13 17 37 63 192 412 318 461 518 530 15. Services 29 77 249 356 411 1002 1513 1529 1669 2102 >'71 3332 2815 3949 5240 16. Others 33 78 110 121 116 424 1034 1028 718 964 1115 1326 2063 2224 2437 Total 186 368 700 907 994 1969 3103 3440 4145 5459 6365 7500 8386 10179 11950 Note: Includes assistance sanctioned to small-scale industries and small road transport operators under Refinance and Silts Rediscounting Schemes, i.e., all SSI units, regardless whether registered with the State/UT Directorates of Industries or not; but excludes assistance sanctioned under Seed Capitat/Special Capital Schemes, through New Debt Instrument and through NSIC and SSIDCs. Source: 10B Operational Statistics 1964-89, Industrial Development Bank of India, Bombay. 23 Table 3.5: Financial Assistance by State Financial Corporations to SSI As end of Total Amounts Number of Disbursements March Sanctioned Units (Ra.mil.) (Rs.mil.) (1) (2) (3) (4) 1981 2544.1 26447 1533.9 1982 3634.7 28178 2107.1 1983 4596.6 28682 2911.0 1984 4610.2 24796 3082.4 1985 5531.5 24447 3700.3 1986 7616.8 22724 4528.7 1987 9196.7 23339 5874.7 1988 9122.8 26601 6976.2 1989 9991.8 25625 7874.9 Cumulative to (58501.6) (276584) (44822.4) March 1989 Note: SIDO registered units only. Source: Report on Development Banking in India - 1988-89 24 Table 3.6: SCHEDULED COMMERCIAL BANKS' EXPOSUSRE TO SICK SSI UNITS SICK UNITS No. of Amount As % of As % of As end of Total SSI Amount sick Outstanding Total Total December Units Outstanding Units (Rs.mil.) Number Amounts (in 000'9) (Rs.mit.) (1) (2) (3) (4) (5) (4)/(2) (5)/(3) *********************************.......*********************..**.*************************************** 1981 961 39531 25342 3591 . 2.6 9.1 1982 1050 44643 58551 5690 5.6 12.7 1983 1238 53894 78351 7290 6.3 13.5 1984 1455 65372 92384 8797 6.3 13.5 1985 1642 78293 117783 10707 7.2 13.7 1986 1877 91273 145776 13061 7.8 14.3 1987 2227 107290 204259 17973 9.2 16.8 1988 2533 129680 240573 21410 9.5 16.5 (provisional) Note: (a) Includes alt SSI units, registered and unregistered. (b) According to the 1989 official definition, an SSI unit is considered sick if it has, at the end o ..ny accounting year, accumulated losses equal to or exceeding 50% of its peak net worth in the immediately preceding five accounting years. However, should it be difficult to get financial particulars as in tiny/decentralised sector, a unit may be considered sick in the event of continuous default for one year in interest payments or amortisation of principal and if there are persistent irregularities in the operation of its credit limit with the bank. Source: Report on Currency and Finance (various issues), Reserve Bank of India. 25 Table 4.1: NUMBER OF ITEMS RESERVED FOR EXCLUSIVE MANUFACTURE BY SSI Number of Items Date ---...-------------- of Reservation Reserved De-reserved April 1, 1967 47 February 19, 1970 8 February 24, 1971 73 November 11, 1971 4 February 26, 1974 53 June 5, 1976 3 April 26, 1973 324 Total No. of Items (net of de-reservation) 504 (in terms of National Industrial Classification) 807 December 30, 1978 1 May 12, 1980 27 February 19, 1981 1 1 August 3, 1981 9 December 23, 1981 2 13 October 14, 1982 3 October 19, 1982 9 September 3, 1983 35 October 18, 1984 1 May 30, 1986 7 14 October 30, 1986 1 7 February 13, 1987 13 July 20, 1987 3 March 18, 1988 1 Total No. of Items (net of de-reservation) 846 Source: DCSSI. 26 Table 4.2: DISTRIBUTION OF SSI AND NON-SSI SICK UNITS BY BROAD INDUSTRY (as of June 1988) SSI NON -SSI No. of % of Outstanding % of No. of % of Outstanding % of Units Total Bank Total Units Total Bank Total INDUSTRY Credit Credit (Rs.mft.) (Rs.mit.) Engineering 16949 7.8 4124.4 20.8 259 22.1 7102.4 23.5 Electrical 3661 1.7 952.9 4.8 19 1.6 457.3 1.5 Textiles 17784 8.2 1326.5 6.7 227 19.4 9966.4 32.9 Jute 163 0.1 38.9 0.2 35 3.0 1242.8 4.1 Paper 1469 0.7 375.8 1.9 97 8.3 1829.1 6.0 Rubber 1395 0.6 328.8 1.7 16 1.4 535.4 1.8 Cement 323 0.1 75.4 0.4 10 0.9 427.5 1.4 Iron & Steel 2015 0.9 945.2 4.8 70 6.0 1498.8 5.0 Sugar 683 0.3 185.0 0.9 24 2.0 986.7 3.3 Chemicals 6894 3.2 2085.5 10.5 122 10.4 1660.1 5.5 NiscelLaneous 166100 76.4 9360.1 47.3 293 25.0 4552.3 15.0 Total 217436 103.0 19798.5 100.0 1172 100.0 30258.8 100.0 Note: includes all SSI units, registered and unregistered. Sources: Reserve Bank of India and SIDO. Table 4.3: lHOLESALE PRICE INDICES BY BROAD SUBSECTOR, 1982/83 - 1989/90 (Base 1981/82=100) WEIGHTS 1982/83 1903/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 TOTAL FOOD ARTICLES 17.386 111.1 126.5 131.8 134.1 147.8 161.1 177.1 179.3 Food Grains 7.917 109.1 119.4 117.1 124.5 129.4 141.3 161.8 165.4 Other Food 9.469 112.8 132.4 144.1 142.1 163.2 177.7 189.9 190.9 INDUSTRIAL RAt MATERIALS 14.909 101.6 10B.5 118.3 115.9 124.4 142.8 140.3 145.3 Nan-Food Articles 10.081 100.8 112.4 124.6 120.4 134.1 163.0 160.2 166.0 Minerals 4.828 103.3 100.4 105.1 106.5 104.2 100.5 98.6 102.2 FUEL, POWER & LUBRICANTS 10.663 106.5 112.5 117.3 129.8 138.6 143.3 151.2 156.6 MANUFACTURED PRODUCTS 57.042 103.5 109.8 117.5 124.5 129.2 138.5 151.5 168.6 Food Products 10.143 97.4 107.8 113.9 117.2 * 129.1 140.5 147.8 165.4 Beverage & Tobacco 2.149 100.2 106.2 111.1 123.2 133.0 155.0 180.7 207.7 Textiles 11.545 104.8 109.5 120.0 119.5 116.0 126.6 139.6 158.2 Chemicals and Chemical Products 7.355 103.5 107.3 112.0 118.3 124.6 131.9 135.8 140.1 Basic metals and products 7.632 104.5 111.7 123.1 139.7 141.3 149.7 176.4 205.6 Machinery and Machine toots 6.268 102.8 106.7 112.2 121.4 127.3 132.3 150.8 166.2 Transport Equipment 2.705 103.6 105.6 111.9 123.0 129.6 135.5 148.9 166.2 ALL COMMODITIES 100.000 104.9 112.9 120.1 125.4 132.7 143.6 154.3 165.7 .--**************************** - --------------------- - ------------------- - ---------------------- --.........-...... Note : This tPI series based 1981/82 was introduced in July 1989. Source: Office of the Economic Adviser, Ministry of Industry, New Delhi. Table 5.1: TOTAL NUMBER OF SSI ESTABLISHMENTS BY SUBSECTOR, 1984/85 NIC CODE & DESCRIPTIONS GRAND TOTAL F A C T 0 R Y S E C T 0 R (ASI) DIRECTORY MANUFACTURING NON-DIRECT.ESTABLISHMENTS OUN-ACCOUNT ENTERPRISES .******************** ****..-----. *****. *** **. ******------ -******. *****. **. ------- ---.. -..... -.........- ........................... N | Nedium- & I Small-Scate Industriesj I I A Of which: ILarge-Scatel|-*********------* *--- I I I N | Units I I I U SSI I Indep. Ancit.1 I I F I I Subtotal units units ISubtotal Rural Urban | Subtotal Rural Urban Subtotal Rural Urban -I---..I- ***.*. . . . ..**.-.** -------- ----- ----- -------- - ---- ----- (1) (2) (3a) (3b) 1 (4) 1 (5) (6) (1) j (8) (9) (10) | (11) (12) (13) | (14) (15) (16) I I I I I 20-1 Food products 3290208 3287775 98131 | 2433 | 15026 14982 44 | 83105 53684 29421 I 585323 383971 201352 | 2604321 2175353 428968 22 Beverages,tobacco,etc. 1374641 1370720 20605 | 3921 | 3172 3156 16 | 17433 13014 4419 | 65873 48234 17639 | 1284242 991396 292846 23 Cotton textiles 2382140 2381038 61204 1102 5658 5645 13 | 55546 23421 32125 I 149410 71705 77705 | 2170424 1798769 371655 24 'Woot,sitk,etc. 350946 350294 24409 | 652 2303 2296 7 | 22106 7597 14509 | 28648 12769 15879 | 297237 233783 63454 25 Jute textiles 62269 62163 720| 106 | 109 104 5| 611 193 4181 2004 173 18311 59439 56493 2946 26 Textile products 3676364 3676152 61069 j 212 I 2851 2842 9 | 58218 24161 34057 | 458585 208478 250107 | 3156498 2347481 809017 27 Wood,furniture,etc. 3099118 3098888 32450 230 3417 3367 50 | 29033 9608 19425 I 179443 101752 77691 | 2886995 2519410 367585 28 Paper & printing,etc. 141060 140212 25300 | 848 3960 3949 11 | 21340 1252 20088 | 46489 3928 42561 | 68423 17056 51367 on 29 Leather & fur products 531108 530885 9770 j 223 | 706 700 6 9064 661 8403 | 41794 15667 26127 | 479321 390289 89032 30 Rubber,petroteum,etc. 72334 71814 13340 520 3380 3326 54 99.0 1570 8390 21831 3580 18251 | 36643 15936 20707 31 Chemicals, etc. 131595 130235 17370 | 1360 | 4672 4655 17 | 12698 2490 10208 | 12999 3630 9369 99866 33631 66235 32 Non-metatlic products 1057223 1056229 42880 | 994 | 6847 6813 34 | 36033 25681 10352 | 67600 46817 20783 | 945749 841492 104257 33 Basic metal industries 56104 54942 13208 | 1162 I 4739 4631 108 | 8469 832 7637 | 15132 2362 12770 | 26602 14280 12322 34 Metal products 602290 601760 35132 | 530 5548 5442 106 | 29584 4709 24875 j 89668 36342 53326 | 476960 404636 72324 35 Non-elec.machinery etc. 122478 121671 24054 807 6361 6029 332 17693 1327 16366 | 26804 4563 22241 | 70813 55039 15774 36 Electrical machinery 26471 25804 12835 | 667 j 3164 2946 218 | 9671 950 8721 | 7590 512 7078 | 5379 1480 3899 37 Transport equipnent 47987 47466 9104 | 521 2520 2255 265 | 6584 577 6007 | 14656 7104 7552 | 23706 17703 6003 38 Other manufacturing 766305 766126 26691 | 179 1330 1296 34 25361 5070 20291 | 75327 14478 60849 | 664108 389485 274623 39 Repairing services 2024843 2024590 25019 I 253 2646 2624 22 | 22373 2405 19968 269626 59106 210520 | 1729945 1134835 595110 I I I I I Total 19815484 19798764 553291 16720 78409 77058 1351 1474882 179202 295680 | 2158802 1025171 1133631 117086671 13438547 3648124 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Note: (3a) z ASI's SSI * DME + NOE + OAE; (3b) = ASI's SSI + ONE. Table 5.2: EMPLOYNENT OF SSI BY SUBSECTOR, 1984/85 (in thousands) NIC CODE & DESCRIPTIONS GRAND TOTAL F A C T 0 R Y S E C T 0 R ( A S I ) DIRECTORY NANUFACTURING NON-DIRECT.ESTABLISHNENTS OWN-ACCOMT ENTERPRISES -.*..*......*.*..***..* ***************** ***** ***--.. --- -**** ***. ***.*. *. ....................... ......................... ............-.-...-.------ N INedium&Large-I Small-Scale Industries A Of which SS11 Scale Units I-**- **- * ****-*- *---- Subtotal Subtotal Subtotal N ---- * * * * * * * * Subtota... *--- ***-- ........- ........... U % of | % of *****nd**** Indep. Ancil. %of Rural Urban 2 of Rural Urban j lof Rural Urban F No. (2) | No. (2) No. Sof(2) units units No. (2) No. (2) No. (2) -***** .**** ..**** .***** ...** ..... **...* ...*** *****. ..... .*** .**. .**** ..... ****. ....* ...*. ..*.* ...me *..** (1) (2) (3) (4) | (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) I I 20-1 Food products 6966 6561 94.2 | 405 5.8 | 591 8.5 590.0 0.81 728 10.4 482.3 245.3 1137 16.3 727.0 410.2 4105 58.9 3492 613 22 Beverages,tobacco,etc. 2613 2415 92.4 | 198 7.6 | 155 5.9 154.0 0.72 221 8.4 176.6 44.1 182 7.0 138.8 43.0 1858 71.1 1418 440 23 Cotton textiles 6802 6046 88.9 756 11.1 195 2.9 193.3 1.64 649 9.5 281.1 368.1 372 5.5 182.0 190.1 4830 71.0 4111 719 24 'woot,silk,etc. 1080 866 80.2 214 19.8 | 59 5.5 59.2 0.27 209 19.3 72.0 136.7 82 7.6 34.8 46.8 516 47.8 371 145 25 Jute textiles 420 133 31.6 | 287 68.4 | 6 1.3 5.4 0.21 6 1.4 2.6 3.3 9 2.1 0.4 8.6 112 26.7 106 6 26 Textile products 5205 5174 99.4 | 31 0.6 | 79 1.5 78.7 0.13 545 10.5 258.9 286.4 1023 19.6 431.9 590.7 3527 67.8 2631 896 27 Wood,furniture,etc. 4599 4577 99.5 I 23 0.5 | 52 1.1 51.8 0.53 274 6.0 79.8 194.6 421 9.2 237.4 134.0 3829 83.2. 3328 501 28 Paper & printing,etc. 660 456 69.1 | 204 30.9 | 87 13.2 86.6 0.30 163 24.7 10.7 152.1 109 16.5 13.5 95.0 98 14.8 29 69 29 Leather & fur products 772 730 94.6 | 42 5.4 | 27 3.6 27.0 0.40 72 9.3 4.7 67.2 103 13.3 39.7 63.0 528 68.4 395 134 30 Rubber,petroleum,etc. 370 259 70.0 I 111 30.0 | 75 20.2 73.4 1.23 79 21.3 12.7 66.3 57 15.3 11.4 45.3 49 13.1 27 21 31 Chemicals, etc. 851 500 58.8 | 350 41.2 | 162 19.0 161.3 0.45 156 18.3 29.2 126.4 27 3.2 8.5 18.9 156 18.3 43 112 32 Non-metallic products 2781 2601 93.5 | 180 6.5 232 8.3 230.2 1.34 494 17.8 388.1 105.9 204 7.3 148.3 55.2 1672 60.1 1511 161 33 Basic metal industries 807 276 34.2 | 531 65.8 | 138 17.2 134.5 3.99 65 8.0 6.6 58.2 37 4.6 5.1 31.6 36 4.4 16 19 34 Netal products 1157 1072 92.6 85 7.4 | 112 9.6 109.1 2.43 239 20.6 38.5 200.1 108 9.3 92.8 15.2 613 53.0 512 102 35 Non-elec.machinery etc. 711 436 61.3 I 275 38.7 I 155 21.8 145.4 9.26 139 19.5 8.7 130.0 60 8.5 10.9 49.5 82 11.5 63 19 36 Electrical machinery 457 192 42.1 | 265 57.9 88 19.3 81.2 7.08 81 17.7 7.9 73.0 15 3.3 1.0 14.0 8 1.8 2 6 37 Transport equipment 629 185 29.4 | 444 70.6 I 77 12.2 68.2 8.64 52 8.3 5.4 47.0 28 4.4 14.5 13.2 28 4.5 23 5 38 Other manufacturing 1347 1309 97.2 | 38 2.8 | 31 2.3 29.9 0.83 251 18.6 59.8 191.4 157 11.6 36.5 120.1 871 64.6 517 353 39 Repairing services 2543 2504 98.5 39 1.5 140 5.5 137.3 2.77 159 6.2 17.6 141.0 553 21.8 109.8 443.4 1652 65.0 1043 609 Total 40770 36292 89.0 4478 11.0 2460 6.0 2416.8 43.02 4580 11.2 1943.4 2637.1 4682 11.5 2244.3 2437.7 24570 60.3 19638 4932 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Estabidsments & Own-Account Enterprises Surveys (1984/85). Note: Based on number of persons economically engaged, including part-time workers who count as 0.3 person. Table 5.3: AVERAGE UNBER OF EMPLOYEES OF SSI BY SUBSECTOR, 1984/85 NIC CODE & DESCRIPTIONS F ACT 0 R Y SECTR 0 ASI ) DIRECTORY MANUFACTURING NON*OIRECT.ESTABLISIHIENTS OtM-ACCOUNT ENTERPRISES ....................... .......................................... -..--.-----. --... --- --- - - - --** *** ..****.. .. ....***************.... .. ..... I Smatt-Scale Industries I I All SSI INEDIUNi& LARGE*1 *******-************ * I I UNITS SCALE UNITS Indep. Ancit. j Average Rural.. Urban Average Rural Urban Average Rural Urban Average units units I ............ .............. ....... ...... ..-..- ....... ..... ----- **-- -- **----- ...*** ----- ***** ... ... (1) (2a) (2b) 1 (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) I I I II 20-1 Food products 2.0 13.4 j 166.7 39.3 39.4 18.5 8.8 9.0 8.3 1.9 1.9 2.0 1.6 1.6 1.4 22 Beverages,tobacco,etc. 1.8 18.2 | 50.4 48.8 48.8 45.3 12.7 13.6 10.0 2.8 2.9 2.4 1.4 1.4 1.5 23 Cotton textiles 2.5 13.8 | 686.3 34.5 34.2 126.3 11.7 12.0 11.5 2.5 2.5 2.4 2.2 2.3 1.9 24 Wool.siLk,etc. 2.5 11.0 I 328.3 25.8 25.8 38.0 9.4 9.5 9.4 2.8 2.7 2.9 | 1.7 1.6 2.3 25 Jute textiles 2.1 16.1 | 2705.1 51.8 52.3 41.0 9.8 13.6 8.0 4.5 2.1 4.7 1.9 1.9 2.0 26 Textile products 1.4 10.2 | 146.9 27.7 27.7 14.4 9.4 10.7 8.4 2.2 2.1 2.4 1.1 1.1 1.1 27 Wood,furniture,etc. 1.5 10.1 98.1 15.3 15.4 10.7| 9.5 8.3 10.0 2.3 2.3 2.4 1.3 1.3 1.4 28 Paper & printing,etc. 3.3 9.9 | 240.3 21.9 21.9 26.8 7.6 8.5 7.6 2.3 3.4 2.2 | 1.4 1.7 1.3 29 Leather & fur products 1.4 10.2 | 187.2 38.8 38.6 66.0 | 7.9 7.2 8.0 2.5 2.5 2.4 | 1.1 1.0 1.5 30 Rubber,petroleun,etc. 3.6 11.5 | 213.9 22.1 22.1 22.8 | 7.9 8.1 7.9 2.6 3.2 2.5 | 1.3 1.7 1.0 31 Chemicals, etc. 3.8 18.3 | 257.7 34.6 34.7 26.2 12.3 11.7 12.4 2.1 2.3 2.0 | 1.6 1.3 1.7 32 Mon-metattic products 2.5 16.9 | 181.0 33.8 33.8 39.4 13.7 15.1 10.2 j 3.0 3.2 2.7 | 1.8 1.8 1.5 33 Basic metal industries 5.0 15.4 456.9 29.2 29.0 36.9 7.7 8.0 7.6 2.4 2.2 2.5 | 1.3 1.1 1.6 34 Metal products 1.8 10.0 160.4 20.1 20.0 22.9 8.1 8.2 8.01 1.2 2.6 0.31 1.3 1.3 1.4 35 Non-eLec.machinery etc. 3.6 12.2 340.7 24.3 24.1 27.9 7.8 6.6 7.9 | 2.3 2.4 2.2 | 1.2 1.1 1.2 36 Electrical machinery 7.5 13.2 397.1 27.9 27.6 32.5 8.4 8.3 8.4 | 2.0 2.0 2.0 j 1.5 1.4 1.6 37 Transport equipment 3.9 14.2 853.2 30.5 30.3 32.6 8.0 9.3 7.8 | 1.9 2.0 1.7 1.2 1.3 0.9 38 other manufacturing 1.7 10.6 213.0 23.1 23.1 24.5 9.9 11.1 9.4 2.1 2.5 2.0 | 1.3 1.3 1.3 39 Repairing services 1.2 11.9 | 152.2 52.9 52.3 126.0 7.1 7.3 7.1 2.1 1.9 2.1 1.0 0.9 1.0 Total 1.8 12.7 267.8 j 31.4 31.4 31.8 9.6 10.8 8.9 1 2.2 2.2 2.2 1.4 1.5 1.4 Sources: ASI (1984/85); Directory Nanufacturing Establishments Survey (1984/85); and Non-Directory Establishments & own-Account Enterprises Surveys (1984/85). Note: (1) Number of employees divided by nmaber of establishments, each part-time worker in non-ASI establishments counted as 0.3 employee. (ii) (2a) = ASl's SSI + DNE + KDE + QAE; (2b) a ASI's SSI + ONE. Table 5.4: CONCENTRATION OF PRODUCTIVE CAPITAL OF SSI BY SUBSECTOR, 1984/85 (values in Rs. million) MIC CODE & DESCRIPTIONS GRAND TOTAL F A C T 0 R T SECT 0 ( ASI ) DIRECTORY NANUFACTURING NON-DIRECT.ESTABLISHMENTS Otal-ACCOUNT ENTERPRISES ******************-**** ***************.* ..... * ***. * *.. ** ***.* **...*. * ......* * ** -*- -***-- -*-*-**-- -*- -**- - * N iNedium&Large-I Small-Scale Industries A Of which SS1| Scale Units I-*********-------*** Subtotat Subtotal Subtotal N **--****.*..|**---******-* Subtotal ---------- -........ ........... U % of % 2 of -******** Indep. Ancit. of Rural Urban I of Rural Urban I of Rural Urban F Value (2) I Value (2) lValue Sof(2) units units IValue (2) |Vatue (2) |Vatue (2) --** ***** ** * - * * ------ ----- ..... ..... .... .... ..... ..... ..... ..... ..... ..... ..... ..... (1) (2) (3) (4) 1 (5) (6) | (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) I I 20-1 Food products 104745 78594 75.0 26151 25.0 | 9251 8.8 9210.9 40.0 4562 4.4 1787 2775 22894 21.9 12668 10227 41887 40.0 26911 14975 22 Beverages,tobacco,etc. 12236 8302 67.9 | 3934 32.1 I 1562 12.8 1558.3 3.9 1161 9.5 243 918 1350 11.0 811 539 4229 34.6 3286 943 23 Cotton textiles 59227 37513 63.3 | 21715 36.7 2363 4.0 2357.4 5.1 2953 5.0 1035 1918 4050 6.8 2585 1466 28147 47.5 22670 5477 24 'Woot,silk.etc. 20760 5230 25.2 15530 74.8 1515 7.3 1509.5 5.0 1683 8.1 343 1340 430 2.1 156 275 1601 7.7 1012 590 25 Jute textiles 1247 326 26.2 j 921 73.8 25 2.0 20.3 4.9 79 6.3 34 45 16 1.3 2 14 207 16.6 194 12 26 Textile products 95246 93705 98.4 j 1541 1.6 | 1652 1.7 1649.6 2.7 1846 1.9 496 1350 11042 11.6 2602 8440 79165 83.1 31883 47281 27 Wood,furniture,etc. 52166 50983 97.7 | 1183 2.3 | 960 1.8 947.7 12.3 2664 5.1 573 2090 5347 10.2 2322 3025 42013 80.5 37154 4859 28 Paper 9 printing,etc. 30603 796 26.0 22647 74.0 I 2485 8.1 2477.5 7.8 2257 7.4 193 2064 2867 9.4 120 2748 347 1.1 54 293 29 Leather 9 fur products 12833 11664 90.9 j 1169 9.1 732 5.7 728.3 4.0 356 2.8 19 337 1769 13.8 120 1649 8807 68.6 6561 2246 30 Rubber,petroleuw,etc. 73878 5617 7.6 ( 68262 92.4 2489 3.4 2460.0 29.2 1631 2.2 189 1442 1302 1.8 721 581 194 0.3 98 96 31 Chemicats, etc. 85314 9968 11.7 | 75345 88.3 5756 6.7 5730.7 24.9 1721 2.0 342 1379 2053 2.4 111 1942 439 0.5 63 376 32 Non-metattic products 43317 21557 49.8 j 21760 50.2 | 3374 7.8 3352.6 20.9 1816 4.2 1292 524 2174 5.0 1288 886 14193 32.8 13534 660 33 Basic metal industries 106786 5559 5.2 1101228 94.8 1 3930 3.7 3858.1 71.7 989 0.9 145 844 430 0.4 141 289 210 0.2 72 138 34 Netal products 31173 25476 81.7 5696 18.3 I 2851 9.1 2788.0 62.5 2326 7.5 354 1972 1866 6.0 298 1568 18434 59.1 11940 6494 35 Non-elec.machinery etc. 33783 9866 29.2 | 23917 70.8 | 3851 11.4 3669.7 181.5 2176 6.4 94 2082 1167 3.5 109 1057 2673 7.9 2493 180 36 Electrical machinery 30259 5735 19.0 I 24524 81.0 I 3063 10.1 2925.4 137.8 1206 4.0 110 1096 1402 4.6 7 1395 64 0.2 17 46 37 Transport equipment 35913 3380 9.4 | 32533 90.6 1678 4.7 1488.1 190.2 731 2.0 63 668 800 2.2 267 533 172 0.5 105 67 38 Other manufacturing 15584 12465 80.0 | 3120 20.0 I 817 5.2 805.7 10.8 911 5.8 87 825 1681 10.8 177 1504 9055 58.1 5221 3834 39 Repairing services 36428 35109 96.4 | 1320 3.6 | 1726 4.7 1713.6 12.8 822 2.3 106 716 8008 22.0 1586 6421 24553 67.4 14475 10078 Total 881497 429004 48.7 452493 51.3 50079 5.7 49251.4 828.0 31888 3.6 7503 24385 70648 8.0 26088 44560 276389 31.4 17T745 98644 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Table 5.5: AVERAGE FIXED CAPITAL OF SSI BY SUBSECTOR, 1984/85 (in Rs. '000) NIC CODE & DESCRIPTIONS F A C T 0 R Y SECT 0 R ( ASI ) DIRECTORY NANUFACTURING NON-DIRECT.ESTABLISHMENTS GUN-ACCOUNT ENTERPRISES Smatt-Scate Industries | | | ALL SSI INEDIUM-& LARGE-| I ********-***----*-- UNITS SCALE UNITS Indep. Ancit. Average Rural Urban Average Rural Urban Average Rural Urban j Average units units j | (1) (2a) (2b) (3) I (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) I I I I I 20-1 Food products 20 74| 6496 I 301 300 880) 32 27 42) 37 31 461 15 12 29 22 Beverages,tobacco,etc. 4 34| 466 | 121 122 19| 18 12 37 17 15 21| 3 3 3 23 Cotton textiles 14 511 17069 257 257 338| 31 32 291 23 32 141 12 11 14 24 Noot,sftk,etc. 10 73 17594 I 329 327 829| 46 35 511 13 11 151 5 4 8 25 'Jute'texttes 2 80j 18009 | 330 321 520| 36 41 33 5 7 5I 1 1 4 26 Textile products 23 271 3705 | 258 259 78j 16 14 18| 21 11 28| 24 13 55 27 Wood,furniture,etc. 14 48 j 2614 | 126 125 168 | 39 39 39 23 16 31( 13 13 10 28 Paper & prntng,etc. 44 130| 21643 j 413 413 336 77 132 74| 56 26 59| 5 3 5 29 Leather A fur products 19 47| 3948 J 460 462 2831 15 10 15j 39 7 591 17 16 23 30 Rubber,petroleun,etc. 49 1611 37920 387 388 3561 84 94 831 55 196 271 5 5 4 31 Chemicals, etc. 42 184| 36355 | 536 535 8291 54 78 491 138 23 182| 4 2 5 32 Non-metattic products 16 691 16135 285 284 4031 28 28 271 24 25 23| 13 14 4 33 Basic metal industries 56 1921 68310 430 432 3321 60 122 53j 23 58 17j 6 3 11 34 Netal products 36 77| 5424 I 274 271 387| 40 39 401 13 7 17| 37 28 89 35 Non-elec.machinery etc. 58 148 | 15308 | 353 350 414 | 75 55 76 j 32 22 34 I 37 44 10 36 Electrical machinery 125 145 1 17931 I 434 436 417 I 51 68 49 j 171 12 183 | 10 11 10 37 Transport eqipment 47 1501 41697 | 380 368 4831 62 68 611 49 32 64 6 5 10 38 Other manufacturing 14 33 I 9375 | 313 311 406 | 18 13 19 1 19 12 20 | 12 13 12 39 Repairing services 15 59j 2229 | 345 346 3091 25 37 24| 26 24 27| 12 12 13 Total 18 771 17115 1 325 324 420! 36 29 40( 28 23 33| 15 12 24 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Note: (i) Fixed capital divided by maker of establishments. (ii) (2a) = ASI's SSI + DME + NDE + OAE; (2b) = ASI's SSI + DME Table 5.6: CAPITAL-LABOR RATIO OF SSI BY SUBSECTOR, 1984/85 NIC CODE & DESCRIPTIONS F A C T 0 R V SECT 0 R ( ASI ) DIRECTORY MANUFACTURING NON-DIRECT.ESTABLISHMENTS OM-ACCOUNT ENTERPRISES I Smalt-Scate Industries I I ALL SSI IMEDIIN-& LARGE-*i -------*********- -I UNITS SCALE UNITS Indep. Ancil. Average Rurat Urban Average Rural Urban Average Rural Urban | Average units units I ..****. **. e. ** *...... *. *****. **. ****. *-- ***- ***---- *- ***--- *-- **-- -e--- ---**** -**** *-*** ------- ----- ----- (1) (2a) (2b) (3) (4) (5) (6) | (7) (8)' (9) (10) (11) (12) (13) (14) (15) I I I I I 20-1 Food products 10204 5479 | 38977 | 7663 7608 47543 I 3706 3040 5015 18812 16564 22796 9337 7421 2C244 22 Beverages,tobacco,etc. 2291 1874 | 9233 | 2484 2494 414 1446 875 3733 | 6064 5338 8403 | 2006 1996 2032 23 Cotton textiles 5354 3733 | 24871 | 7467 7507 2680 2612 2696 2548 9137 12541 5880 | 5346 4970 7492 24 WooL.silk,etc. 4194 6611 I 53588 12726 12685 21805 | 4867 3739 5461 4564 4004 4980 | 2881 2569 3677 25 Jute textiles 1160 4988 I 6658 | 6378 6141 12683 3672 3058 4152 1133 3278 1042 766 703 1913 26 Textile products 16509 2677 25220 I 9343 9350 5385 1 1713 1292 2094 9226 5457 11982 I 21068 11298 49742 27 Wood,furniture,etc. 9337 4793 I 26639 I 8224 8147 15760 | 4138 4661 3923 I 9626 6973 13049 | 9693 10067 7211 28 Paper & printing,etc. 13645 13143 | 90074 I 18814 18835 12542 10117 15424 9743 24076 7458 26441 3348 1734 4023 29 Leather A fur products 13999 4651 j 21085 I 11855 11966 4293 | 1906 1453 1938 15987 2630 24408 | 15371 15463 15096 30 Rubber,petroteum,etc. 13598 13988 I 177284 | 17535 17567 15597 10637 11563 10459 21125 61389 10961 3588 3134 4172 31 Chemicals, etc. 10803 10065 I 141100 1 15468 15423 31614 4448 6678 3932 1 65377 9993 90348 I 2710 1387 3221 32 Non-metaltic products 6584 4063| 89130 8425 8414 10239 2018 1860 2598| 8001 7736 8713| 7505 7993 2919 33 Basic metal industries 11091 12491 | 149510 I 14701 14870 9000 7776 15222 6925 | 9495 26461 6739 | 4723 2222 6838 34 Metal products 20008 7696 I 33814 13606 13533 16893 4934 4820 4956 | 10689 2679 59490 | 28677 21749 63606 35 Non-elec.machinery etc. 16142 12165 I 44933 | 14520 14500 14835 I 9541 8353 9621 14143 8987 15284 | 31886 39112 8340 36 Electrical machinery 16720 11009 j 45152 | 15561 15799 12832 I 6039 8180 5808 | 86854 6148 92627 | 6573 8293 6023 37 Transport equipment t2014 10562 | 48874 12469 12172 14817 | 7762 7297 7815 | 2%98 15685 36754 5184 3662 11821 38 Other manufacturing 8025 3087 | 44007 13549 13465 16567 I 1807 1079 2034 8965 4763 10240 | 9455 9588 9261 39 Repairing services 11843 4939 | 14646 6522 6604 2454 | 3542 5094 3348 12637 12684 12625 | 12825 13031 12471 Total 9821 6045 63905 10371 10321 13181 3722 2684 4487 13115 10533 15491 | 10275 8355 17920 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Note: (1) Fixed capital divided by nuber of employees. In alt non-ASI establishments, a part-time worker was counted as 0.3 employee. (if) (2a) a ASI's SSI + DME + NDE + 0AE; (2b) a ASI's SSI + DME Table 5.7: CAPITAL-LABOR RATIO OF SSI BY SUBSECTOR, 1984/85 NIC CODE & DESCRIPTIONS FACT 0 R Y SECT 0 R ( ASI ) DIRECTORY MANUFACTURING NON-DIRECT.ESTABLISHNENTS OWN-ACCOUNT ENTERPRISES ISmall-Scate Irdustries | - j ALL SSI INEDIUM-& LARGE- *****-----********-** UNITS SCALE UNITS | Indep. Anef. I Average Rural Urban Average Rural Urban Average Rural Urban Average units units | | (1) (2a) (2b) | (3) I (4) (5) (6) I (7) (8) (9) | CO) (11) (12) | (13) (14) (15) I I I I I 20-1 Food products 11979 10477 64497 15657 1611 49140 I 6271 3706 11314 | 20131 17424 24929 | 10203 7707 24414 22 Beverages,tobacco,etc. 3438 7254 19886 | 10094 10116 5387 | 5262 1377 20825 7425 5847 12515 | 2276 2318 2143 23 Cotton textiles 6204 6297 | 28712 I 12119 12195 3106 I 4549 3681 5211 | 10886 14205 7709 | 5828 5515 7616 24 tool,ailk,etc. 6038 11925 72551 | 25457 25487 18797 8068 4770 9805 5275 4477 5868 | 3101 2728 4054 25 I Jute textiles 2456 8942 I 3211 | 4465 3732 23902 13180 12919 13384 1746 4431 1631 | 1842 1828 2092 26 Textile products 18111 5604 49486 | 20952 20953 20769 j 3385 1915 4714 I 10796 6024 14290 | 22444 12119 52746 27 Wood,furniture,etc. 11140 11087 52388 | 18327 18278 23077 j 9705 7181 10740 | 12691 9781 16446 | 10974 11165 9702 28 Paper & printing,etc. 17446 18992 111144 | 28605 28612 26441 I 13863 18060 13568 I 26415 8846 28915 | 3544 1864 4247w 29 Leather & fur products 15972 10950 27993 j 26712 26955 10101 I 4944 3918 5017 j 17238 3023 26199 | 16670 16629 16792 30 Rubber,petrolem,etc. 21685 26814 613726 | 33341 33503 23721j 20644 14817 21763 22958 63040 12839 | 3998 3584 4531 31 Chemicals, etc. 19917 23559 215022 35579 35523 55830 | 11063 11702 10915 I 74953 13042 102866 2818 1456 3344 32 Non-metatLic products 8288 7152 | 120929 | 14569 14563 15620 | 3676 3328 4949 I 10681 8684 16041| 8490 8956 4107 33 Basic metal industries 20170 24192 | 190668 | 28381 28690 17974 | 15251 21870 14495 j 11686 27439 9128 | 5919 4443 7167 34 Metal products 23775 14764 | 67003 1 25558 25554 25752 9748 9179 9857 1 17273 3211 102939 | 30052 23326 63957 35 Non-elec.machinery etc. 22651 20542 | 86993 24903 25241 19596 | 15681 10751. 16012 | 19309 9959 21378 | 32684 39840 9369 36 Electrical machinery 29802 25228 92584 34687 36012 19474 14903 13934 15007 | 93653 7414 99822 T 7730 8735 7409 37 Transport equipment 18278 18639 | 73191 | 21828 21805 22016 | 13955 11605 14225 j 28886 18346 40520 | 6129 4611 12750 38 Other manufacturing 9521 6129 | 81804 | 26574 26954 12965 3628 1450 4309 | 10740 4851 12527 j 10400 10093 10849 39 Repairing services 14020 8530 | 34273 12325 12481 4619 I 5179 6007 5075 I 14477 14450 14483 I 14859 13874 16545 Total 11821 11643 | 101047 20359 20378 19248 6962 3861 9247 I 15089 11624 18279 | 11249 9051 20001 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Note: () Sum of fixed capital and working capital divided by number of employees. In all non-ASI estabtishments, a part-time worker was counted as 0.3 employee. (if) (2a) = ASI's SSI + ONE + NDE + OAE; (2b) = ASI's SSI + DME Table S.8: GROSS OUTPUT VALUE OF SSI BY SUBSECTOR, 1984/85 (values in Rs. million) NIC CODE & DESCRIPTIONS GRAND TOTAL F A C T 0 R V S E C T 0 R ( A S I ) DIRECTORY NANUFACTURING NON-DIRECT.ESTABLISIIENTS OWl-ACCOUNT ENTERPRISES N jMedium&Large-I Small-Scale Industries | A Of which SSI| Scale Units *--------------------is- | Subtotal| Subtotal Subtotal N - .***..*.*---I----------| Subtotal I ---------- --------- ----------- U of | % of |---------- Indep. Ancit.| of Rural Urban j of Rural Urban % of Rural Urban F Value (2) | Value (2) jValue Sof(2) units units |Value (2) IValue (2) |Value (2) (1) (2) (3) (4) 1 (5) (6) 1 (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) I I 20-1 Food products 218075 135453 62.1 | 82622 37.9 56072 25.7 55847 226 25302 11.6 528 19674 21918 10.1 8023 13895 32160 14.7 22715 9445 22 Beverages,tobacco,etc. 28450 15789 55.5 12661 44.5 | 7241 25.5 7204 37 2816 9.9 660 2156 1330 4.7 838 492 4403 15.5 3158 1245 23 Cotton textiles 96459 36944 38.3 59515 61.7 j 10959 11.4 10925 35 10377 10.8 2231 8146 5996 6.2 1085 4912 9611 10.0 6981 2630 24 'INoot,lsiLketc. 46540 14560 31.3 31981 68.7 | 5388 11.6 5382 6 6624 14.2 942 5682 823 1.8 286 537 1724 3.7 1055 670 25 Jute textiles 15451 2077 13.4 13374 86.6 | 833 5.4 812 21 481 3.1 76 405 93 0.6 3 90 670 4.3 651 19 26 Textile products 40710 36040 88.5 4670 11.5 8257 20.3 8251 6 7484 18.4 1411. 6073 7369 18.1 2193 5176 12929 31.8 7838 5091 27 Wood,furniture,etc. 30639 28301 92.4 I 2339 7.6 2250 7.3 2220 30 6593 21.5 1262 5332 5739 18.7 2311 3428 13719 44.8 11289 2429 28 Paper & printing.etc. 38423 13444 35.0 24979 65.0 | 5877 15.3 5843 34 4881 12.7 292 4589 2135 5.6 108 2028 551 1.4 180 371 29 Leather & fur products 18809 12912 68.6 | 5897 31.4 | 2704 14.4 2697 7 2519 13.4 76 *2443 1457 7.7 386 1071 6233 33.1 4027 2206 30 Rubber,petroleum,etc. 118502 15280 12.9 1103222 87.1 | 8835 7.5 8746 89 5025 4.2 434 4591 1170 1.0 134 1036 251 0.2 92 159 31 Chemicals, etc. 148967 28416 19.1 1120551 80.9 1 19826 13.3 19787 39 6929 4.7 1306 5621 1305 0.9 118 1187 356 0.2 88 268 32 Non-metattic products 49411 17208 34.8 j 32203 65.2 | 6488 13.1 6445 43 4336 8.8 3035 1301 1437 2.9 611 826 4947 10.0 3920 1027 33 Basic metal industries 134029 23969 17.9 1110060 82.1 | 18485 13.8 18268 217 4430 3.3 733 3698 824 0.6 80 744 229 0.2 65 165 34 Metal products 38174 24949 65.4 13226 34.6 | 8480 22.2 8292 188 8800 23.1 889 7911 3969 10.4 802 3167 3699 9.7 2143 1557 35 Non-elec.machinery etc. 67056 21181 31.6 | 45875 68.4 | 13544 20.2 12973 571 5894 8.8 189 5704 1148 1.7 110 1038 595 0.9 420 176 36 Electrical machinery 60601 15510 25.6 | 45091 74.4 10529 17.4 10022 508 4135 6.8 279 3857 679 1.1 7 672 167 0.3 29 138 37 Transport equipment 65534 12775 19.5 52760 80.5 | 5559 8.5 4966 593 3555 5.4 82 3473 3352 5.1 138 3213 310 0.5 215 95 38 Other manufacturing 17241 12533 72.7 j 4708 27.3 | 2831 16.4 2782 49 3099 18.0 314 2785 1644 9.5 260 1384 4960 28.8 1859 3102 39 Repairing services 23961 21990 91.8 | 1971 8.2 j 4954 20.7 4886 69 2465 10.3 323 2142 4931 20.6 800 4131 9640 40.2 4062 5578 Total 1257034 489331 38.9 767703 61.1 199112 15.8 196346 2766 115745 9.2 20164 95581 67320 5.4 18293 49027 107155 8.5 70785 36370 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Table 5.9: GROSS VALUE ADDED OF SSI BT SUBSECTOR, 1984/85 (values in Rs. million) NIC CODE & DESCRIPTIONS GRAND TOTAL F A C T 0 R Y S E C T 0 R ( A S I ) DIRECTORY MANUFACTURING NON-DIWT.ESTABLISHMENTS ON-ACCOWNT ENTERPRISES N |Nedium&Large-j Smatt-Scate Industries | | | A Of which SSIj Scale Units I----a------- -** --* subtotal j Subtotal Subtotal N .*--*****.**|---.******** Subtotal I--------** --------- ------------ U X of % of j-----***** Indep. Ancit.1 X of Rural Urban X of Rural Urban % of Rural Urban F Value (2) 1 Value (2) IValue %of(2) units units IValue (2) |Value (2) jVaLue (2) (1) (2) (3) (4) | (5) (6) 1 (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) I I 20-1 Food products 41108 27370 66.6 | 13738 33.4 j 5315 12.9 5304 12 4295 10.4 1259 3037 7758 18.9 3360 4398 10000 24.3 6650 3350 22 Beverages,tobacco,etc. 9596 6147 64.1 | 3448 35.9 1506 15.7 1505 1 718 7.5 325 393 573 6.0 351 221 3351 34.9 2507 844 23 Cotton textiles 28162 13602 48.3 14561 51.7 j 1555 5.5 1551 4 2862 10.2 861 2001 2270 8.1 468 1802 6914 24.6 5231 1664 24 'Uoot,siLk,etc. 11883 4381 36.9 | 7502 63.1 1003 8.4 999 4 1940 16.3 316 1624 397 3.3 143 254 1041 8.8 699 342 25 Jute textiles 4143 354 8.51 3789 91.5| 65 1.6 64 1 46 1.1 8 38 20 0.5 1 19 223 5.4 215 8 26 Textile prodLnts 19766 18666 94.4 | 1100 5.6 j 1793 9.1 1792 1 2879 14.6 769 2110 5109 25.8 1576 3533 8885 45.0 5723 3162 27 Wood,furniture,etc. 16094 15417 95.8 676 4.2 I 499 3.1 493 7 2164 13.4 365 1600 2764 17.2 1198 1565 9991 62.1 8367 1603 28 Paper & printing,etc. 12047 4423 36.7 I 7625 63.3 1456 12.1 1447 9 1669 13.9 144 1525 1046 8.7 53 993 252 2.1 51 201 29 Leather & fur products 5751 4638 80.7 1113 19.3 454 7.9 451 3 944 16.4 22 922 618 10.8 171 447 2622 45.6 1826 796 30 Rubber,petroleum,etc. 13853 3442 24.9 10410 75.1 1680 12.1 1647 33 1210 8.8 103 1115 426 3.1 50 376 119 0.9 32 87 31 Chemicals, etc. 34401 5727 16.6 1 28675 83.4 | 3826 11.1 3821 5 1190 3.5 219 972 64 1-3 57 407 246 0.7 63 184 32 Non-metaLtic products 18227 8125 44.6 10102 55.4 | 2031 11.1 2017 14 1832 10.1 1379 453 740 4.1 330 410 3522 19.3 2813 709 33 Basic metal industries 26230 3433 13.1 22797 86.9 | 2053 7.8 2000 53 959 3.7 101 88 285 1.1 33 252 135 0.5 39 96 34 Metal products 13661 9908 72.5 3754 27.5 1753 12.8 1707 46 4108 30.1 299 3809 1970 14.4 389 1582 2077 15.2 1407 670 35 Non-eec.machinery etc. 21681 7015 32.4 | 14666 67.6 I 4160 19.2 4004 156 1839 8.5 56 1783 597 2.8 54 543 419 1.9 309 110 36 Electrical machinery 20072 3459 17.2 16613 82.8 2067 10.3 1935 132 1044 5.2 58 986 273 1.4 4 269 76 0.4 10 66 37 Transport equipment 23053 6546 28.4 16507 71.t 1363 5.9 1205 159 2075 9.0 32 2043 2928 12.7 67 2861 180 0.8 130 50 38 Other manufacturing 7860 5693 72.4 2167 27.6 570 7.2 557 13 1602 20.4 210 1391 923 11.7 131 791 2599 33.1 1050 1549 39 Repairing services 14779 14000 94.7 | 779 S.3 2392 16.2 2350 43 1161 7.9 124 1037 3485 23.6 519 2967 6961 47.1 2868 4094 Total 342366 162345 47.4 180021 52.6 35540 10.4 34845 695 34546 10.1 6650 27895 32646 9.5 8956 23690 59613 17.4 40009 19604 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Oun-Account Enterprises Surveys (1984/85). Table 5.10: GROSS VALUE ADDED PER CAPITA OF SSI BY SUBSECTOR, 1984/85 MIC CODE & DESCRIPTIONS FACT O R Y SECTR 0 R ASS ) DIRECTORY NANUFACTURING MON-DIRECT.ESTABLISHNENTS OtI-ACCOUNT ENTERPRISES **.***..****.**...*.**. *************... ---******. ************ **** **** **** ****--- ----- o ............... . . .............o.......... ( Smlt-Scate Industries ( All SSI INEDItNo& LARGE-1 ---------------* *--**- UIITS SCALE UNITS Indep. Ancit. | Average Rurat Urban Average Rurat Urban Average Rurat 'rban | Average umits units I **.. * ** ......* *** .... .... ... --* * * * * * * * * * **----- .. . . . . .-... . . . . . . . ------ ** * *****... ---*** -- **... ----- (1) (2a) (2b) 1 (3) (4) (5) (6) I (7) (8) (9) (10) (11) (12) (13) (14) (15) I I I I I 20-1 Food products 4172 7290 23284 8996 8989 14496 | 5904 2610 12380 | 6822 4622 122 2 I 2436 1905 5462 22 Beverages,tobacco,etc. 254S 5923 | 22387 | 9729 9770 829 | 3253 1839 8916 | 3151 2532 5144 | 1804 1768 1918 23 Cotton textiles 2250 5232 | 75326 | 7976 8026 2132 j 4409 3064 5436 6101 2571 9480 j 1432 1272 2341 24 Woot,sitk,etc. 5058 10974 I 126672 | 16859 16864 15789 | 9296 4393 11879 4868 4127 418 I 2016 1883 2354 25 'Jute textiles 2667 9563 j 696543 | 11517 11693 6829 I 7713 3211 11233 I 2227 3150 2188 j 1988 2026 1306 26 Textile products 360 7485 13972 | 22740 22761 10000 5279 2971 7367 I 4996 3649 5981 | 2519 2175 3527 27 Wood,furniture,etc. 3369 8149 j 13040 | 9528 9501 12195 | 7886 468 9247 I 650 5049 8509 | 2609 2520 3201 28 Paper & printing,etc. 9698 12515 I 88055 16758 16709 31186 | 10252 13489 10024 9636 3949 10445 | 2573 1752 2917 29 Leather & fur products 6351 14065 j 41182 I 16546 16673 7828 13120 4S49 13725 6026 4318 7102 4963 4627 5954 30 Rubber,petroleum,etc. 13291 18859 j 141778 | 22496 22430 26401 | 15422 8104 16827 I 7513 4388 8302 | 2437 1162 4078 31 Chemicals, etc. 11442 15806 i 177744 | 23650 23684 11211 | 7651 7485 7689 I 16951 6691 21577 | 1582 1447 1634 32 Non-metattic products 3124 5324 | 43882 | 8769 8760 10463 j 3709 3554 4278 I 3434 2225 7418 I 2107 1862 4416 33 Basic metal idustries 12456 14815 I 169525 I 14826 14870 13337 j 14790 15207 14742 , 7762 6413 7981 | 3807 2409 4990 34 hottl products 9246 16738 j 34403 I 15715 1544 18912 | 17216 7762 19036 I 18234 4186 103814 j 3386 2749 6598 35 Van-elec.machinery etc. 16105 20446 j 100876 26898 27539 16843 I 13255 6402 13714 I 9880 4918 10979 | 5127 4941 5733 36 Electrical machinery 17978 18388 j 204501 | 23408 23820 18683 j 12907 7341 13508 18212 3618 19256 j 9148 4943 10492 37 Transport equipment 35394 26605 241874 I 17730 17652 18347 | 39639 5942 43504 | 105739 4618 217362 6416 5696 9555 38 Other manufacturing 4348 702| 72508 | 18545 18630 15486 6376 3518 7268| 5893 3601 6589| 2985 2030 4382 39 Repairing services 5591 11896 5674 | 17080 17114 15410 I 7318 7034 7354 6301 4727 6691 I 4213 2749 6721 Total 4473 9955 j 74486 | 14448 14418 - 16145 7542 3422 10578 6973 3991 9718 | 2426 2037 3975 Sources: ASI (1984/85); Directory Hanufacturing Establishments Survey (1984/85); and Non-Directory Establishments A 0m-Account Enterprises Surveys (1984/85). Note: (I) Gross value added divided by uaber of employees. In at non-ASI establishments, each part-time worker was counted as 0.3 employee. (ii) (2a) a ASI*s SSI + ONE + NDE + OAE; (2b) = ASI's SSI * DME. Table 5.11: AVERAGE PRODUCTIVE CAPITAL OF SSI BY SUBSECTOR, 1984/85 (in Rs. t000) NIC CODE & DESCRIPTIONS FACT 0 R Y SECT 0 R C ASI ) DIRECTORY MANUFACTURING NON-DIRECT.ESTABLISHMENTS OIN-ACCOUNT ENTERPRISES **.** ..-- .-..---..----- ------------------....----..**.********-*- ...--.......-.......... ......................... ....................... | Small-Scale Industries ALL SSI jMEDIUN-& LARGE-R GE**-----****-- ****** , UNITS SCALE UNI!S | Indep. Ancit. Average Rural Urban Average Rural Urban Average Rural Urban I | Average units units ***..... *.... .............. ....... .----- *****. --..--- *--- **-- .****- -----. .-.-- .. .. .. .. .-- -... ..... (1) (2a) (2b) I (3) I (4) (5) (6) (7) (8) (9) j (10) (11) (12) (13) (14) (15) I I I I I 20-1 Food products 24 141| 10748 616 615 909| 55 33 94| 39 33 51j 16 12 35 22 Severages,tobacco,etc. 6 132 | 1003 | 492 494 244 | 67 19 208 | 20 17 31 | 3 3 3 23 Cotton textiles 16 87 19705 | 418 418 392 53 44 601 27 36 19| 13 13 15 24 iool,sitk,etc. 15 131 1 23819 658 657 714 76 45 921 15 12 17| 5 4 9 25 'Jute textiles 5 144 8686 | 231 195 980 129 175 1071 8 9 8I 3 3 4 26 Textile products 25 57| 7269 | 580 580 300 32 21 401 24 12 341 25 14 58 27 Wood,furniture,etc. 16 112 | 5141 | 281 281 246 92 60 108 | 30 23 39 | 15 15 13 28 Paper & printing,etc. 57 187j 26706 | 628 627 7091 106 154 1031 62 30 65| 5 3 6 w 29 Leather & fur products 22 111 5241 | 1037 1040 667| 39 28 40| 42 8 631 18 17 25 OD 30 Rubber,petroteum,etc. 78 309 131273 j 736 740 541 | 164 120 172 1 60 201 32 I 5 6 5 31 Chemicals, etc. 17 430 55401 | 1232 1231 1465 136 137 135 I 158 31 207 4 2 6 32 Non-metattic products 20 121 21891 | 493 492 615 I 50 50 51 | 32 28 431 15 16 6 33 Basic metal industries 101 372 87115 | 829 833 6641 117 175 1111 28 60 23| 8 5 11 34 Netal products 42 147 10748 | 514 512 590| 79 75 79| 21 8 29| 39 30 90 35 Non-elec.machinery etc. 81 251 29637 | 605 609 547| 123 71 1271 44 24 481 38 45 11 36 Electrical machinery 222 333 I 36767 I 968 993 632 | 125 115 126 a 185 14 197 | 12 12 12 37 Transport equipment 71 265| 62443 666 660 7181 111 108 111| 55 38 1l 7 6 11 38 Other manufacturing 16 65| 17428 I 614 622 3181 36 17 41I 22 12 25| 14 13 14 39 Repairing services 17 102 | 5217 I 652 633 582 | 37 44 36 | 30 27 31 | 14 13 17 Total 22 1481 27063 | 639 639 6131 67 .42 821 33 25 39| 16 13 27 Sources: ASI (1984/85); Directory Nanufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Note: (1) Sum of fixed capital and working capital divided by number of establishments. (ii) (2a) a ASI's SSI + ONE + NDE * OAE; (2b) a ASI*s SSI + ONE Table 5.12: RELATIVE CAPITAL PRODUCTIVITY OF.SSI BY SUBSECTOR. 1984/85 MIC CODE & DESCRIPTIONS F A C T 0 R SECT 0 R ( ASI ) DIRECTORY NANUFACTURING NON-DIRECT.ESTABLISiMENTS 0MN-ACCOUNT ENTERPRISES -'"-- "--------------*-******. --.. ---.*.*. --. **********. ***. **..---------.. --......... . . ......................... ....................... |I Smatt-Scate Industries I I I All SSI INEDIUN-& LARGE| ***** *-------------I I I UNITS SCALE UNITS | Indep. Ancit. Average Rural Urban Average Rural Urban Average Rural Urban I | Average units units (1) (2a) (2b) | (3) I (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) I I I II 20-1 Food products 0.35 0.70 0.53 I 0.57 0.58 0.30 | 0.94 0.70 1.09 | 0.34 0.27 0.43 0.24 0.25 0.22 22 Beverages.tobacco,etc. 0.74 0.82 | 0.88 I 0.96 0.97 0.15 I 0.62 1.34 0.43 | 0.42 0.43 0.41 0.79 0.76 0.89 23 Cotton textiles 0.36 0.83 | 0.67 I 0.66 0.66 0.69 0.97 0.83 1.04 | 0.56 0.18 1.23 0.25 0.23 0.31 24 Wool,sitk,etc. 0.84 0.92 | 0.48 I 0.66 0.66 0.84 I 1.15 0.92 1.21 | 0.92 0.92 0.92 0.65 0.69 0.58 25 Jute textiles 1.09 1.07 4.11 2.58 3.13 0.29 | 0.59 0.25 0.84 | 1.28 0.71 1.34 | 1.08 1.11 0.62 26 Textile products 0.20 1.34 | 0.71 | 1.09 1.09 0.48 1.56 1.55 1.56 | 0.46 0.61 0.42 I 0.11 0.18 0.07 27 Wood,furniture,etc. 0.30 0.74 | 0.57 0.52 0.52 0.53 | 0.81 0.04 0.86 | 0.52 0.52 0.52 I 0.24 0.23 0.33 28 Paper & printing,etc. 0.56 0.66 | 0.34 0.59 0.58 1.18 | 0.74 0.75 0.74 0.36 0.45 0.36 I 0.73 0.94 0.69 29 Leather & fur products 0.40 1.28 | 0.95 0.62 0.62 0.78 | 2.65 1.16 2.74 0.35 1.43 0.27 j 0.30 0.28 0.35 30 Rubber,petroleum,etc. 0.61 0.70 | 0.15 0.67 0.67 1.11 | 0.75 0.55 0.77 | 0.33 0.07 0.65 | 0.61 0.32 0.90 31 Chemicals, etc. 0.57 0.67 j 0.38 0.66 0.67 0.20 | 0.69 0.64 0.70 j 0.23 0.51 0.21 | 0.56 0.99 0.49 32 Non-metallic products 0.38 0.74 I 0.46 0.60 0.60 0.67 1.01 1.07. 0.86 0.34 0.26 0.46 0.25 0.21 1.08 33 Basic metal industries 0.62 0.61 | 0.23 0.52 0.52 0.74 0.97 0.70 1.02 I 0.66 0.23 0.87 | 0.64 0.54 0.70 34 etal products 0.39 1.13 | 0.66 0.61 0.61 0.73 | 1.77 0.85 1.93 | 1.06 1.30 1.01 | 0.11 0.12 0.10 35 Mon-elec.machinery etc. 0.71 1.00 | 0.61 | 1.08 1.09 0.86 | 0.85 0.60 0.86 0.51 0.49 0.51 | 0.16 0.12 0.61 36 Electrical machinery 0.60 0.73 j 0.68 | 0.67 0.66 0.96 | 0.87 0.53.. 0.90 | 0.19 0.49 0.19 | 1.18 0.57 1.42 37 Transport equipment 1.94 1.43 | 0.51 I 0.81 0.81 0.83 | 2.84 0.51 3.06 3.66 0.25 5.36 j 1.05 1.24 0.75 38 Other manufacturing 0.46 1.26 | 0.69 I 0.70 0.69 1.19 1.76 2.43 1.69 | 0.55 0.74 0.53 | 0.29 0.20 0.40 39 Repairing services 0.40 1.39 j 0.59 I 1.39 1.37 3.34 | 1.41 1.17 1.45 I 0.44 0.33 0.46 | 0.28 0.20 0.41 Total 0.38 0.86 0.40 j 0.71 0.71 0.84 | 1.08 0.89 1.14 j 0.46 0.34 0.53 | 0.22 0.23 0.20 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Estabishments & Own-Account Enterprises Surveys (1984/85). Note: (i) Gross value added divided by the sun of fixed capital and working capital. (ii) (2a) = ASI's SSI + DME + NDE + OAE; (2b) = ASI's SSI + ONE. Table 5.13: RELATIVE CAPITAL PRODUCTIVITY OF SSI BY SUBSECTOR, 1984/85 NIC CODE & DESCRIPTIONS F A C T 0 R Y SECT 0R ( ASI ) DIRECTORY MANUFACTURING NON-DIRECT.ESTABLISHMENTS OUN-ACCOUNT ENTERPRISES I j Smatt-Scate Industries | ALL SSI INEDIUM-& LARGE-| ---**** --******** * UNITS SCALE UNITS j Indep. Andi. Average Rural Urban Average Rural Urban Average Rural Urban I | Average units units I (1) (2s) (2b) j (3) | (4) (5) (6) | (7) (8) (9) j(10) (11) (12) (13) (14) (15) I I I II 20-1 Food products 0.41 1.33 | 0.87 1.17 1.18 0.30 | 1.59 0.86 2.47 | 0.36 0.28 0.47 | 0.26 0.26 0.27 22 Beverages,tobacco,etc. 1.11 3.16 | 1.89 3.92 3.92 2.00 | 2.25 2.10 2.39 I 0.52 0.47 0.61 j 0.90 0.88 0.94 23 Cotton textiles 0.42 1.40 0.77 | 1.07 1.07 0.80 | 1.69 1.14 2.13 | 0.67 0.20 1.61 | 0.27 0.26 0.31 24 woot,sitk,etc. 1.21 1.66 0.65 | 1.32 1.33 0.72 | 1.91 1.17 2.18| 1.07 1.03 1.09 | 0.70 0.73 0.64 25 'Jute textiles 2.30 1.92 1.98 | 1.81 1.90 0.54 2.10 1.05 2.71 1.97 0.96 2.10 2.59 2.88 0.68 26 Textile products 0.22 2.80 | 1.40 | 2.43 2.43 1.86 | 3.08 2.30 3.52 | 0.54 0.67 0.50 j 0.12 0.19 0.07 27 wood,furniture,ete. 0.36 1.70 | 1.12 | 1.16 1.17 0.77 | 1.91 0.98 2.36 | 0.68 0.72 0.65 0.27 0.25 0.44 28 Paper & printing,etc. 0.71 0.95 | 0.42 0.89 0.89 2.49 1.01 0.87 1.03 0.40 0.53 0.40 0.77 1.01 0.73 0 29 Leather & fur products 0.45 3.02 1.26 | 1.40 1.39 1.82 | 6.88 3.13 7.08 0.38 1.64 0.29 | 0.32 0.30 0.39 30 Rubber,petroleun,etc. 0.98 1.35 | 0.53 I 1.28 1.28 1.69 I 1.45 0.70 1.61 | 0.36 0.07 0.76 0.68 0.37 0.98 31 Chemicals, etc. 1.06 1.57 | 0.58 | 1.53 1.54 0.35 | 1.72 1.12 1.96 | 0.26 0.67 0.24 | 0.58 1.04 0.51 32 Mon-metattic products 0.47 1.31 | 0.63 | 1.04 1.04 1.02 | 1.84 1.91 1.65 | 0.45 0.29 0.85 0.28 0.23 1.51 33 Basic metal industries 1.12 1.19 | 0.29 j 1.01 1.00 1.48 | 1.90 1.00, 2.13 0.82 0.24 1.18 | 0.81 1.08 0.73 34 Metal products 0.46 2.17 | 1.31 | 1.15 1.16 1.12 | 3.49 1.61 3.84 j 1.71 1.56 1.75 | 0.12 0.13 0.10 35 Non-*ec.mchinery etc. 1.00 1.68 1.19 | 1.85 1.90 1.14 | 1.39 0.77 1.43 I 0.70 0.55 0.72 0.16 0.13 0.69 36 Electrical mchinery 1.08 1.67 1.39 I 1.50 1.51 1.46 I 2.14 0.90 2.33 | 0.21 0.59 0.21 | 1.39 0.60 1.74 37 Transport equipment 2.95 2.52 0.76 j 1.42 1.45 1.24 5.11 0.81 5.57 | 4.11 0.29 5.91 | 1.24 1.56 0.81 38 Other manufacturing 0.54 2.50 | 1.29 1.37 1.38 0.93 | 3.53 3.26 3.57 0.66 0.76 0.64 | 0.32 0.21 0.47 39 Repairing services 0.47 2.41 | 1.38 j 2.62 2.59 6.28 | 2.07 1.38 2.20 | 0.50 0.37 0.53 | 0.33 0.21 0.54 Total 0.46 1.65 | 0.63 | 1.39 1.40 1.22 2.03 1.28 2.36 | 0.53 0.38 0.63 | 0.24 0.24 0.22 Sources: ASI (1984/85); Directory Manufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Note: (i) Gross value added divided by fixed capital. (ii) (2a) = ASI's SSI + ONE + NDE + 0AE; (2b) = ASI's SSI + ONE. Table 5.14: GROSS OUTPUT/CAPITAL RATIO OF SSI BY SUBSECTOR, 1984/85 NIC CODE & DESCRIPTIONS F A C T 0 R Y S E C T 0 ( A S I ) DIRECTORY MANUFACTURING NON-DIRECT.ESTABLISHMENTS OWN-ACCOUNT ENTERPRISES ******....***.......... ---. ********------. -***. **---******. ***** ..--..---------.-...... ......................... ....................... I Smat-Scale Industries I I I All SSI INEDIUN-& LARGE- * **********---*****--II I taITS SCALE UNITS Indep. Ancit. | Average Rural Urban Average Rural Urban Average Rural Urban Average units units ***.****** ******...----- ---.*** ****** .----- ----.-- ----- ..... ....... ..... ..... ....... ..... ..... ()(2a) (2b) I (3) (4) (5) (6) | (7) (8) (9) |(10) (11) (12) (13) (14) (15) I I I II 20-1 Food products 2.02 11.26 5.23 | 12.38 12.44 5.84 | 9.38 3.84 15.99 j 1.02 0.67 1.49 0.84 0.88 0.76 22 Beverages,tobacco,etc. 2.85 14.30 j 6.93 18.84 18.75 123.33 | 8.83 4.27 13.11 | 1.21 1.13 1.36 | 1.18 1.11 1.39 23 Cotton textiles 1.14 6.77 j 3.16 | 7.53 7.53 7.89 | 6.12 2.94 8.68 | 1.76 0.48 4.39 | 0.37 0.34 0.49 24 Woot.sitk,etc. 4.01 6.78 I 2.79 I 7.12 7.16 1.10 | 6.52 3.50 7.61 2.21 2.05 2.31 | 1.16 1.11 1.25 25 Jute textiles 13.48 22.70 I 7.01 I 23.14 24.32 7.96 j 21.97 9.54 29.12 9.11 2.71 9.97 | 7.80 8.71 1.72 26 Textile products 0.42 9.42 I 5.95 | 11.21 11.21 7.86 j 8.01 4.22 10.13 0.78 0.93 0.73 I 0.17 0.26 0.11 27 Wood,furniture,etc. 0.66 5.65 3.89 | 5.22 5.26 3.58 | 5.81 3.39 6.98 | 1.42 1.40 1.43 0.37 0.34 0.67 28 Paper & printing,etc. 2.16 3.28 1.36 1 3.60 3.58 9.16 | 2.96 1.77- 3.10 | 0.82 1.07 0.81 | 1.68 3.59 1.34 29 Leather & fur products 1.26 11.30 I 6.70 8.32 8.34 4.12 18.37 10.96 18.76 0.89 3.70 0.70 | 0.77 0.66 1.09 30 Rubber,petroleun,etc. 4.34 6.45 I 5.23 I 6.75 6.78 4.66 5.98 2.95 6.62 0.98 0.19 2.09 | 1.44 1.07 1.79 31 Chemicals, etc. 5.26 8.38 2.44 7.92 7.95 2.78 | 10.01 6.71 11.31 | 0.73 1.39 0.70 | 0.84 1.46 0.74 32 Mon-metallic products 1.00 3.67 2.01 3.33 3.33 3.15 | 4.35 4.20 4.73 0.88 0.53 1.72 I 0.39 0.32 2.19 33 Basic metal industries 7.84 9.02 | 1.39 j 9.08 9.14 6.04 | 8.78 7.24 9.17 j 2.36 0.59 3.49 | 1.37 1.79 1.25 34 Metal products 1.16 6.41 | 4.60 5.59 5.62 4.57 | 7.48 4.79 7.98 | 3.44 3.22 3.49 | 0.21 0.19 0.24 35 Mon-elec.machinery etc. 3.01 5.45 j 3.71 | 6.03 6.15 4.15 4.45 2.60 4.56 | 1.34 1.12 1.37 | 0.23 0.17 1.10 36 Electrical machinery 4.82 7.87 I 3.77 | 7.66 7.81 5.59 8.47 4.33 9.09 | 0.52 1.11 0.52 3.07 1.74 3.66 37 Transport equipment 5.75 6.68 | 2.43 | 5.80 5.98 4.63 | 8.75 2.08 9.46 | 4.71 0.61 6.64 | 2.13 2.58 1.53 38 Other manufacturing 1.19 6.81 | 2.81 | 6.80 6.91 3.54 6.83 4.87 7.15 | 1.17 1.50 1.13 | 0.60 0.37 0.95 39 Repairing services 0.74 5.03 | 3.49 | S.42 5.39 10.12 | 4.39 3.60 4.54 I 0.71 0.57 0.74 | 0.45 0.30 0.73 Total 1.37 7.40 j 2.68 j 7.80 7.87 4.88 | 6.79 3.87 8.08 I 1.10 0.77 1.30 | 0.42 0.43 0.41 Sources: ASI (1984/85); Directory Nanufacturing Establishments Survey (1984/85); and Non-Directory Establishments & Own-Account Enterprises Surveys (1984/85). Note: (i) Gross output value divided by fixed capital. (ii) (2a) = ASI's SSI + DME + NDE + OAE; (2b) = ASI's SSI + ONE. Table 6.1: VALUE ADDED FROM MANUFACTURING-REGISTERED (Rs. Crores) at current prices at 1980-81 prices NIC code & description 1980- 1981- 1982- 1983- 1984- 1985- 1986- 1987- 1980- 1981- 1982- 1983- 1984- 1985- 1986- 1987- 81 82 83 84 85 86 87 88 81 82 83 84 85 86 87 88 (1) (2) (3) (4) (S) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) 20-21 Food products 845 1103 1381 1907 1994 2206 2390 2650 845 1116 1506 1679 1694 1776 1776 1854 22 Beverages,tobacco, etc. 246 270 280 580 506 88 694 620 246 261 270 497 420 420 420 362 23 Cotton textiles 1567 1409 1366 1776 1752 2066 2206 2443 1567 1316 1235 1535 1444 1661 1785 1764 24 Wool,sitk,etc. 443 581 636 799 915 1068 1147 1465 443 535 563 662 698 810 810 878 25 Jute textiles 324 258 271 257 412 335 461 461 324 293 273 203 198 215 372 335 26 Textile products 132 165 188 207 301 282 322 331 132 165 185 194 231 174 186 196 27 Wood,furniture,etc. 71 81 87 121 121 130 140 95 71. 71 72 91 87 90 97 64 28 Paper & printing,etc. 526 620 608 759 996 1000 1252 1322 526 575 530 610 716 692 834 850 29 Leather & fur products 77 90 99 127 160 190 199 218 77 94 104 126 147 147 147 153 30 Rubber,petroleum,etc. 614 684 1088 1204 1432 2315 2400 2553 614 577 880 930 1074 1575 1575 1641 31 Cheicals,etc. 1854 2375 2545 3279 3535 3925 4973 6110 1854' 2203 2281 2808 2919 3045 3646 4175 32 Non-metattic products 474 568 853 1047 1410 1569 1559 1571 474 508 636 722 913 970 970 956 33 Basic metal industries 156 2054 2143 2502 2641 3301 3312 3778 1556 1735 1601 1736 1733 1906 1906 2038 34 Metal products 363 404 437 519 580 695 748 843 363 368 372 417 445 478 516 538 35 Non-electrical machinery 985 1177 1335 1608 2026 2282 2415 2488 985 1053 1127 1269 1536 1563 1563 1535 36 Electrical machinery 918 999 1338 1464 1950 2115 2219 2982 918 943 1212 1276 1607 1607 1607 2115 37 Transport equipments 1007 1292 1507 1638 1903 2192 2553 2841 1007 1140 1283 1401 1547 1547 1723 1806 38 Other manufacturing 456 584 745 916 1156 1510 1787 2038 456 548 677 790 945 1165 1323 1447 39 Reparing services 182 200 250 292 334 354 390 467 182 182 219 251 273 . 259 272 312 Gross value added 12640 14914 17157 21002 24124 28123 31167 35276 12640 13683 15026 17197 18627 20100 21528 23019 less imputed bank charges 359 496 599 694 772 940 1190 1423 359 455 525 568 596 671 823 929 Gross value added 12281 14418 16558 20308 23352 27183 29977 33853 12281 13228 14501 16629 18031 19429 20705 22090 less depreciation 2231 2639 2929 3289 3705 4339 4898 5494 2231 2352 2422 2582 2740 2893 3070 3270 Net value added 10050 11779 13629 17019 19647 22844 25079 28359 10050 10876 12079 14047 15291 16536 17635 18820 Source: National Accounts Statistics, CSO. Table 6.2: VALUE ADDED FROM MANUFACTURING-UNREGISTERED (Rs. Crores) at current prices at 1980-81 prices -************************************************************-- -- -* *--------------------------------------------------- ..... NIC code & description 1980- 1981- 1982- 1983- 1984- 1985- 1986- 1987- - 1980- 1981- 1982- 1983- 1984- 1985- 1986- 1987- 81 82 83 84 85 86 87 88 81 82 83 84 85 86 87 88 - ----------------. ----------. ------------------------------------ ----.......................................................................................... (1) (2) (3) (4) (5) (6) (7) (8) (9) - (10) (11) (12) (13) (14) (15) (16) (17) - " " " " " "'. ***** " " " " " ' " " "*****************************-------********.******-----** - --- - ------------------------------- --. ----- - ---................... 20-21 Food products 521 556 483 693 702 771 851 886 521 563 527 610 596 621 632 620 22 Peverages,tobacco,etc. 332 377 385 402 440 469 598 504 3Y2 365 371 344 365 335 362 295 23 Cotton textiles 24 Woolsilk,etc. 2844 2976 3246 3445 4042 4259 4302 5431 2844 2956 3071 3042 3322 3624 3696 3892 25 Jute textiles 26 Textile products 27 Wood,furniture,etc. 918 1074 1014 1205 1064 1089 1039 931 918 940 844 905 763 755 720 621 28 Paper & printing,etc. 214 225 249 325 409 467 494 529 214 209 217 261 294 323 329 340 29 Leather & fur products 233 239 234 261 293 341 365 384 233 247 246 258 269 264 270 271 30 Rubber.petroleum, etc. 100 160 162 207 260 257 236 244 100 152 130 160 195 175 155 157 31 Chemicals,etc. 178 280 228 243 285 342 391 525 178 193 204 208 235 265 287 359 32 Non-metattic products 293 370 452 518 523 553 559 759 293 331 337 357 339 342 348 462 33 Basic metal industries 131 130 153 150 213 242 269 348 131 110 114 104 140 140 155 177 34 OetaL products 778 951 1201 1343 1405 1449 1568 1823 778 666 1022 1077 1080 997 1082 1008 35 Non-electrical machinery 439 544 581 665 738 834 961 989 439 487 491 525 560 571 622 610 36 Electrical machinery 198 217 252 324 357 522 696 935 198 205 229 282 294 397 504 663 37 Transport equipments 526 644 687 759 851 1012 1128 1255 526 568 585 649 692 714 761 798 38 Other manufacturing 486 718 738 511 626 811 1287 1502 486 725 752 508 596 741 1143 1321 39 Repairing services 1312 1557 1682 1948 2002 2774 3359 3699 1312 1421 1477 1679 1637 2028 2339 2469 *****-***************************************************************************************************************************************************************** Gross value added 9503 11038 11747 12999 14210 16192 18103 20744 9503 10338 10617 10969 1137 12292 13405 14063 less imputed bank charges 140 196 232 262 319 398 393 437 140 184 210 221 255 302 291 296 Gross value added 9363 10842 11515 12737 13891 15794 17710 20307 9363 10154 10407 10748 11122 11990 13114 13767 less depreciation 715 878 1044 1203 1379 1632 1879 2136 715 771 826 881 994 1014 1084 1158 Net value added 8648 9964 10471 11534 12512 14162 15831 18171 8648 9383 9581 9867 10128 10976 12030 12609 -"" " " " ************************************* --. -----.. -----*********------ - ---------------------------------------................................................. Source: National Accounts Statistics, CSO. Table 6.3: VALUE ADDED FROM MANUFACTURING-REGISTERED & UNREGISTERED (Rs. Crores) - " " " " " " " " " " " " *************************-***************************- --------------- - -------- - ----------- - -----------*******--------------------------- at current prices at 1980-81 prices -*.*.*..*.**************..****----.-****.*************. -------- ---***.-- ..-***********--------------------------------------- NIC code & description 1980- 1981- 1982- 1983- 1984- 1985- 1986- 1987- 1980- 1981- 1982- 1983- 1984- 1985- 1986- 1987- 81 82 83 84 85 86 87 88 81 82 83 84 85 86 87 88 **.**********************************************.************************************************************************************.******************************* (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) - " " "". *****. **.*. ******.*.*a*................. ... **... **....... **.... *.. **.. ***. ********. -*********. **. -*. -----. --. ----------. --------------. ------.. --.. -------. 20-21 Food products 1366 1659 1864 2600 2696 2977 3241 3536 1366 1679 2033 2289 2290 2397 2408 2474 22 Beverages,tobacco, etc. 578 647 665 982 946 1057 1292 1124 578 626 641 841 785 755 782 657 23 Cotton textiles 1567 1409 1366 1776 1752 2066 2206 2443 1567 1316 1235 1535 1444 1661 1785 1764 24 Woot,fsik,etc. 3287 3557 3882 4244 4957 5327 5449 6896 3287 3491 3634 3704 4020 4434 4506 4770 25 Jute textiles 324 258 271 257 412 335 461 461 324 293 273 203 198 215 372 335 26 Textile products 132 165 188 207 301 282 322 331 132 165 185 194 231 174 186 196 27 wood,furniture,etc. 989 1155 1101 1326 1185 1219 1179 1026 989 1011 916 996 850 845 817 685 28 Paper & printing,etc. 740 845 857 1084 1405 1467 1746 1851 740 784 747 871 1010 1015 1163 1190 29 Leather & fur products 310 329 333 388 453 531 564 602 310 341 350 384 416 411 417 424 30 Rubber,petroteum,etc. 714 864 1250 1411 1692 2572 2636 2797 714 729 1010 1090 1269 1750 1730 1798 31 Chemicalsetc. 2032 2655 2773 3522 3820 4267 5364 6635 2032 2396 2485 3016 3154 3310 3933 4534 32 Non-metatlc products 767 938 1305 1565 1933 2122 2118 2330 767 839 973 1079 1252 1312 1318 1418 33 Basic metal industries 1687 2184 2296 2652 2854 3543 3581 4126 1687 1845 1715 1840 1873 2046 2061 2215 34 Metal products 1141 1355 1638 1862 1985 2144 2316 2666 .1141 1234 1394 1494 1525 1475 1598 1546 35 Non-electrical machinery 1424 1721 1916 2273 2764 3116 3376 3477 1424 1540 1618 1794 2096 2134 2185 2145 36 Electrical machinery 1116 1216 1590 1788 2307 2637 2915 3917 1116 1148 1441 1558 1901 2004 2111 2778 37 Transport equipments 1533 1936 2194 2397 2754 3204 3681 4096 1533 1708 1868 2050 2239 2261 2484 2604 38 Other manufacturing 942 1302 1483 1427 1782 2321 3074 3540 942 1273 1429 1298 1541 1906 2466 2768 39 Reparing services 1494 1757 1932 2240 2336 3128 3749 4166 1494 1603 1696 1930 1910 2287 2611 2781 Gross value added 22143 25952 28904 34001 38334 44315 49270 56020 22143 24021 25643 28166 30004 32392 34933 37082 less Imputed bank charges 499 692 831 956 1091 1338 1583 1860 499 639 735 789 851 973 1114 1225 Cross value added 21644 25260 28073 33045 37243 42977 47687 54160 21644 23382 24908 27377 29153 31419 33819 35857 less depreciation 2946 3517 3973 4492 5084 5971 6777 7630 2946 3123 3248 3463 3734 3907 4154 4428 Net value added 18698 21743 24100 28553 32159 37006 40910 46530 18698 20259 21660 23914 25419 27512 29665 31429 -*********************************************--***********-------*********------------------------------***--------------------..--------------.......-----....---.. Source: National Accounts Statistics, CSO. 45 Table 6.4: Principal Characteristics by Capital Size, 1984/85 (Value figures in Rs. million) Capital No. of Fixed Product. Invested Workers Employees Wages Total Total Gross Depre- Net Range Factories Capital Capital Capital Emolument Input Output ciation Value (Rs.Lakhs) added 0- 1.0 35130 2488 7492 8281 635308 743433 2666 3580 27535 34050 269 6246 1.0- 2.5 17782 3668 8235 9736 367913 446078 1983 2782 30019 36388 1245 5125 2.5- 5.0 11965 4710 9445 11354 317320 389104 1792 2598 30456 36454 570 5428 5.0- 7.5 5558 3814 6850 8218 189948 238641 1119 1708 20537 24928 454 3938 -7.5- 10.0 3547 2909 5074 6407 141741 ' 176607 868 1318 1694 19417 394 2929 10.0- 20.0 6057 8521 , 14203 17508 317718, 401029 2225 3504 40545 49686 114 7997 20.0* 25.0 1371 3111 5123 6175 92604 120449 753 1218 13759 16784 420 2605 25.0+ 8622 516293 710397 731840 3801204 5101174 55161 88461 616278 823558 35673 171607 Unspecified 6915 2908 4836 5500 227653 255197 1007 1434 11022 14395 377 2997 Total 96947 548421 771653 805020 6091409 7871712 67573 106602 806244 1055660 40545 208872 Source: Annual Survey of Industries 1984/85, Central Statistical Organization, Department of Statistics, Ministry of Plas 46 Table 6.5: Principal Characteristics by Employment Size, 1984/85 (Value figures in Rs. million) Net Employment No. of Fixed Product. Invested Total Total Gross Value Range Factories Capital Capital Capital Workers Employees Wages Emolument Input Output Deprec. added 0* 49 76072 26423 43471 49713 942412 1164763 5083 7699 112623 134173 4029 17521 50- 99 10480 13536 21640 26534 598961 726578 3344 5040 61946 74812 1734 11132 100- 199 4939 21993 33207 38037 551507 686911 3770 5999 64119 80988 2570 14299 200- 499 3146 36072 54759 66078 671959 970831 7356 11898 108322 141033 4294 28416 500* 999 1265 51286 108339 92297 672224 883348 8484 13757 115480 152219 6087 30652 1000- 1999 609 . 57123 90284 101292 662930 843881 9941 15421 120545 154241 5668 28029 2000- 4999 333 51897 77824 87188 792244 990632 11931 17521 112562 147580 5335 29683 5000+ 103 290091 342129 343883 1109172 1604868 17664 29269 110647 170615 10828 49140 Total 96947 548421 771654 805020 6001409 7871812 67573 106602 806244 1055660 40545 208871 Source: Annual Survey of Industries 1984/85, Central Statistical organization, Department of Statistics, Ministry of Planni Note: Total nuber of workers was given at 6091409 in the ASI. 47 Table 6.6 : Principal Characteristics by Capital Size, 1987/88 (Value figures in Re. million) Capital Number of Fixed Product. Invested Workers Employees Wages Total Total Gross Deprec N Range Factories Capital Capital Capital Emolument Input Output Va (Re.Lakhs) ad4 ----- en- - ee----- w - e ---e-m- -------- w m e e me-m- ----- ------ ---m 0- 1.0 31191 2986 8749 9586 683297 760070 3549 4412 29948 87614 320 7 1.0- 2.5 18718 4594 1038 12524 341780 410674 2487 385 37288 44002 632 6 2.5- 5.0 14471 5821 12809 14714 32802 4038866 2888 3869 48443 51073 990 6 5.0- 7.6 6891 4468 8052 105687 197092 243025 1627 2881 28292 33629 828 4 7.5- 10.0 4148 3249 6458 8320 142810 178709 1162 1761 22809 26687 623 3 10.0- 20.0 8116 10411 18906 23868 842485 434176 3170 4908 62055 74821 2060 10 20.0- 25.0 20568 3907 8877 8689 104868 134840 1037 1640 22813 27019 789 3 26.0- 35.0 2516 6606 10957 13876 148481 195887 1538 2527 33110 40123 1322 5 35.0- 60.0 2627 10453 16523 21434 212264 277976 2436 4021 47464 58137 1888 8 80.0- 75.0 825 4901 7058 9188 90109 117781 1114 1839 1C293 22338 817 8 75.0+ 6295 725694 949720 1002427 3293127 4429738 67708 109075 888078 1110861 52118 22C Unspecified 4752 1718 3791 4348 177228 198939 1197 1565 10531 13827 18 2 Total 102596 784746 1060257 1*39389 8061786 7785680 89337 140810 1193878 1539731 62522 283336 Source: Annual Survey of Industries 1987/88, Central Statistical Organization, Department of Statistics, Ministry of Planning. 48 Table 6.7: Principal Characteristics by Employment Size, 1987/68 (Value figures in Re. million) Employment Number of Fixed Product. Invested Total Total Gros* Range Factories Capital Capital Capital Workers Employees Wages Emolument Input Output Depree 0- 49 79729 42007 67548 79800 1092042 1352013 7581 11848 182191 214002 6986 so- 99 11581 23145 37731 45245 848778 791483 4986 7596 108696 124723 3679 100- 199 5753 57460 72198 85057 658947 826149 6196 10228 116601 146443 5420 200- 499 3386 64869 91887 108562 002464 1024579 10875 16629 152870 198146 8114 500- 999 1249 111257 156895 169078 687260 932694 12297 20182 191624 243041 10707 1000- 1999 586 108387 161214 168431 846037 843940 14210 21949 1786545 236066 9537 2000- 4999 291 72142 116496 120297 871282 848667 15110 22752 142109 190883 6368 6000. 89 307690 366347 3683079 858978 1166175 18683 30186 126738 186488 11760 Total 102698 784746 1000256 1139839 6081786 77856580 89837 140811 1193873 1589731 62522 2 Source: Annual Survey of Industries 1987/88, Central Statistical Organization, Department of Statistics, Ministry of Planning. 49 Table 6.8 : Principal Characteristics by Capital Six*, 1978/79 (Value figures in Re. million) Capital Number of Fixed Product. Invested Workers Employees Wages Total Total Gross Deprec Range Factories Capital Capital Capital Emolument Input Output V (Ro.Lakhs) a 0- 1.0 36298 2474 7058 1037172 2648 31340 4 1.0- 2.5 18324 2500 6289 488779 1830 21603 2 2.5- 5.0 7156 2654 4924 386787 1849 19365 2 6.0- 7.6 3251 1919 3241 247138 910 12342 1 7.6- 10.0 2012 1815 3181 168101 758 10827 1 10.0- 25.0 3277 4780 8604 421008 2204 27277 4 25.0+ 4907 212561 281273 4278451 38395 316531. 76 unspecified 17053 156. 564 t 226880 626 4163 Total 88077 228859 314182 7248109 46117 448488 . 95 Source: Annual Survey of Industries 1978/79, Central Statistical Organization, Department of Statistics, Ministry of Planning. 50 Table 6.9: Principal Characteristics by Employment Size, 1978/79 (Value figures in Re. million) Employment Number of Fixed Product. Invested Total Total Gross Range Factories Capital Capital Capital Workers Employee Wages Emolument Input Output Deprec ---------- --------- ------- -**---- ------ -*----- --------- ----- --------- ----- ------ ---*** 0- 49 69167 10041 17708 1068414 2688 61719 50- 99 9020 5788 9690 623081 2668 33880 100- 199 4768 7783 12818 734041 3343 38386 200- 499 2920 16680 25964 903866 6862 72887 500- 999 10]9 21853 33156 787859 6790 63969 1000- 1999 866 30268 44853 923007 7876 69305 2000- 4999 377 24166 37999 1131455 9694 64545 5000+ 80 112281 132444 1096326 8800 49479 Total 88077 228059 314132 7248109 46117 443438 Source: Annual Survey of Industries 1978/79, Central Statistical Organization, Department of Statistics, Ministry of Planning. Table 7.1: AVERAGE GROWTH OF NUMBER OF SSI ESTABLISHMENTS BY SUBSECTOR. 1978179-1984/85 RIC CODE & DESCRIPTIONS SSI FACTORIES + ONE FACT 0 R S S.E CT 0 R (ASI) DIRECTORY MANUFACTURING NON-DIRECTORY & OWN-ACCOUNT ----------------------- ------------------------ ------------------------------------------------------- (ONE) ESTABLISHMENTS Medium- & Large-Scale Unitsl Small-Scale Industries (50 or more employees) | (49 or less employees) I | I I I I Average I Average Average j Average I Average 1978/79 1984/85 Growth I 1978/79 1984/85 Growth 1978/79 1984/85 Growth 1978/79 1984/85 Growth I 1978/79 1984/85 Growth (1) (2) (3) (4) j (5) (6) (7) f (8) (9) (10) | (11) (12) (13) j (14) (15) (16) I I I I 20-1 Food products 78075 96305 3.6 I 4003 4259 1.0 1 10497 13200 3.9 I 67578 83105 3.5 1 1413408 3189644 14.5 22 Beverages,tobacco,etc. 17825 22676 4.1 1 1769 - 1850 0.7 | 5071 5243 0.6 I 12754 17433 5.3 | 199023 1350115 37.6 23 Cotton textiles 54587 60418 1.7 I 2086 1888 -1.6 j 3949 4872 3.6 I 50638 55546 1.6 728629 2319834 21.3 24 Wool,silk.etc. 22496 24378 1.3 I 583 683 2.7 1970 2272 2.4 1 20526 22106 1.2 | 120255 325885 18.1 25 Jute textiles 535 712 4.9 I 129 114 -2.0 | 108 101 -1.1 | 427 611 6.2 | 57807 61443 1.0 26 Textile products 36406 60832 8.9 I 452 449 -0.1 I 1719 2614 -7.2 34687 58218 9.0 ( 1544803 3615083 15.2 uo 27 Wood,furniture,etc. 20568 32476 7.9 | 201 204 0.2 | 2891 3443 3.0 j 17677 29333 8.6 I 1478971 3066438 12.9 28 Paper & printing.etc. 15545 25361 8.5 | 701 787 1.9 I 3261 4021 3.6 1 12284 21340 9.6 | 45891 114912 16.1 29 Leather & fur products 2629 9705 24.3 200 288 6.3 I 527 641 3.3 I 2102 9064 27.6 258621 521115 12.4 30 Rubber.petroleum.etc. 8882 13279 6.9 ( 437 581 4.9 | 2029 3319 8.5 I 6853 9960 6.4 ) 50229 58474 2.6 31 Chemicals, etc. 12717 16955 4.9 | 1402 1775 4.0 I 2862 4257 6.8 I 9855 12698 4.3 I 36553 112865 20.6 32 Non-metallic products 29287 41997 6.2 1 1268 1877 6.8 3619 5964 -8.7 I 25668 36033 5.8 j 487490 1013349 13.0 33 Basic metal industries 9891 12966 4.6 1227 1404 2.3 1 3638 4497 3.6 j 6253 8469 5.2 I 28607 41734 6.5 34 Metal products 21402 35079 8.6 | 570 583 0.4 j 4445 5495 3.6 I 16957 29584 9.7 j 322415 566628 9.9 35 Non-elec.machinery etc 13573 23704 9.7 I 945 1157 3.4 I 4381 6011 5.4 1 9192 17693 11.5 52553 97617 10.9 36 Electrical machinery 5869 12697 13.7 | 615 805 4.6 I 1787 3026 9.2 I 4082 9671 15.5 j 6596 12969 11.9 37 Transport equipment 4443 8948 12.4 598 677 2.1 1594 2364 - 6.8 j 2849 6584 15.0 1 41753 38362 -1.4 38 Other manufacturing 24945 26644 1.1 188 226 3.1 j 1130 1283 2.1 | 23815 25361 1.1 312468 739435 15.4 39 Repairing services 12475 24258 11.7 ( 844 1014 3.1 | 1776 1885 1.0 I 10699 22373 13.1 j 947090 1999571 13.3 Total 392150 549390 5.8 | 18218 20621 2.1 1 57254 74508 45 ( 334896 474882 6.0 8134262 19245473 15.4 Sources: ASI: Directory Manufacturing Establishments Survey; and Pon-Directory Establishments & Own-Account Enterprises Surveys. 1978/79 and 1984/85. Table 7.2: AVERAGE GROWTH OF NUMBER OF SSI EMPLOYEES BY SUBSECTOR. 1978/79-1984/85 NIC CODE & DESCRIPTIONS SSI FACTORIES + ONE FACT 0 R Y S E C T 0 R (ASI) DIRECTORY MANUFACTURING NON-DIRECTORY & OWN-ACCOUNT ----------------------.. . . . ---..................-.. ----...........-............ ----------------------- (ONE) ESTABLISHMENTS Medium- & Large-Scale UnitsI Small-Scale Industries j | (50 or more employees) | (49 or less employees) I I I I I Average I Average I Average ( Average Averaget 1978/79 1984/85 Growth | 1978/79 1984/85 Growth 1978/79 1984/85 Growth | 1978/79 1984/85 Growth | 1978/79 1984/85 Growth (1) (2) (3) (4) | (5) (6) (7) I (8) (9) (16) j (11) (12) (13) | (14) (15) (16) 20-1 Food products 880973 923013 0.8 | 949753 800866 -2.8 j 161601 195446 J.2 I 719372 727567 0.2 | 2416994 5242370 13.8 22 Beverages.tobacco.etc. 345155 285114 -3.1 I 264960 288093 1.4 | 120563 64477 -9.9 I 224592 220637 -0.3 | 302774 2039834 37.4 23 Cotton textiles 642966 731377 2.2 | 1027260 869109 -2.7 | 72626 82117 2.1 I 570340 649260 2.2 | 1675706 5201975 20.8 24 Wool,silk.etc. 240058 244445 0.3 1 161297 237770 6.7 j 30951 35781 2.4 | 209107 208664 0.0 j 262008 597932 14.7 25 Jute textiles 5862 7961 5.2 j 257369 290390 2.0 | 1735 1997. 2.4 | 4127 5964 6.3 I 110209 121166 1.6 26 Textile products 393936 581845 6.7 j 64945 73464 2.1 | 29583 36538 3.6 | 364353 545307 7.0 2332436 4549732 11.8 L 27 Wood.furniture.etc. 193102 312634 8.4 I 36209 36768 0.3 | 36661 38185 -0.7 I 156441 274449 9.8 | 2136844 4249875 12.1 28 Paper & printing,etc. 156631 224068 5.1 ) 201968 229407 2.1 I 54228 61236 2.0 I 102403 162832 8.0 I 111046 206335 10.9 29 Leather A fur products 32547 83936 17.1 I 36845 57179 7.6 | 11425 11990 0.8 I 21122 71946 22.7 I 366336 630935 9.5 30 Rubber.petroleum.etc. 91493 130213 6.1 | 110837 134660 3.3 | 36349 51223 5.9 I 55144 78990 6.2 j 78387 105359 5.1 31 Chemicals. etc. 150528 225644 7.0 | 356959 442128 3.6 I 57069 70051 3.5 I 93459 155593 8.9 j 61083 183129 20.1 32 Non-metallic products 5724E2 594985 0.6 j 246911 310525 3.9 j 62403 100970 8.4 | 510059 - 494015 -0.5 I 810393 1875231 15.0 33 Basic metal industries 118836 143092 3.1 j 476289 591152 3.7 | 63280 78223 3.6 | 55556 64869 2.6 | 57459 72266 3.9 34 Metal products 212462 314788 6.8 | 109982 120344 1.5 | 69389 76203 1.6 I 143073 238585 8.9 | 516970 721451 5.7 35 Non-elec.machinery etc 152191 235674 7.6 | 296145 332649 2.0 I 75017 96929 4.4 I 77174 138745 10.3 I 97367 142191 6.5 36 Electrical machinery 71478 133168 10.9 | 248088 300918 3.3 I 34735 52276 7.1 | 36743 80892 14.1 I 9028 23227 17.1 37 Transport equipment 54685 91204 8.9 | 413171 482521 2.6 | 28483 38857 5.3 | 26202 52347 12.2 I 58368 55707 -0.8 38 Other manufacturing 255524 271208 1.0 | 42013 48840 2.5 I 18871 20020 1.0 | 236653 251188 1.0 | 518422 1027269 12.1 39 Repairing services 135480 194898 6.2 124154 142302 2.3 I 35526 36277- 0.3 I 99954 158621 8.0 1315628 2205560 9.0 I I I I Total 4706369 5729266 3.3 | 5425155 5789085 1.1 | 1000495 1148796 2.3 I 3705874 4580470 3.6 113237456 29251543 14.1 Sources: ASI; Directory Manufacturing Establishments Survey; and Non-Directory Establishments & Own-Account Enterprises Surveys, 1978/79 and 1984/85. Table 7.8: AVERAGE GROWTH OF GROSS VALUE ADDED OF SSI BY SUBSECTOR, 1978/79-1984/85 (in Rs. million) NIC CODE A DESCRIPTIONS SSI FACTORIES + DME F A C T 0 R V S E C T 0 R (ASI) DIRECTORY MANUFACTURING NON-DIRECTORY A OWN-ACCOUNT ----- ---- ------------------------ ------------------------------------------------- (DME) ESTABLISHMENTS I Medium A Large-Scale Unitel Small-Scale Industries ( (50 or more employeez) j (49 or les employees) II I Average Average I Average I Averagel Average 1978/79 1984/85 Growth I 1978/79 1984/85 Growth | 1978/79 1984/86 Growth I 1978/79 1984/85 Growth I 1978/79 1984/86 Growth (1) (2) (B) (4) 5 (5) (6) (7) I (8) (9) (10). I (11) (12) (13) I (14) (15) (18) 20-1 Food products 2689 6982 18.4 6397 16367 16.9 979 2886 18.8 I 1659 4295 18.4 8415 17759 81.6 22 Beverages,tobacco,etc. 911 1408 7.5 | 2266 4269 11.1 | 394 885 9.7 518 718 6.8 I 400 8924 48.8 28 Cotton textiles 1769 8720 18.8 | 11741 15268 4.5 | 189 857 31,1 I 1589 2882 10.8 | 187 9184 82.9 24 Wool,alik,*tc. 1005 2899 19.8 | 8711 7547 12.8 34 959 18.1 I 652 1940 19.9 I 368 1488 25. 25 Jute textiles 28 87 24.7 I 1740 8818 14.0 12 41 22.2 | 11 46 27.3 I 43 243 33.7 28 Textile products 1480 8627 16.1 | 768 2145 18.7 | 280 748 17.8 | 1201 2879 15.7 8224 1398 27.7 27 Wood,furniture,*tc. 1007 2605 17.2 I 353 785 18.0 I 228 441 11.8 I 781 2164 18.5 I 2528 12754 31.0 28 Paper A printing,etc. 1018 2989 19.8 3210 7781 15.8 6 512 1820 17.1 5 501 1869 22.2 I 280 1298 29.1 29 Leather A fur products 284 1202 81.4 I 457 1308 19.2 87 269 19.9 | 147 944 36.4 533 3240 86.1 30 Rubber,petroleum,stc. 729 2532 23.1 4332 10776 18.4 I 409 1814 --21.5 3 820 1218 25.0 120 545 28.7 31 Chemicals, etc. 1899 836 12.1 | 18602 80326 14.8 1148 2175 11.2 | 651 1190 13.7 83 711 42.9 82 Non-metallic products 1275 2830 14.2 I 3139 11136 28.5 | 856 997 18.7 I 918 1832 12.2 718 4262 34.6 38 Basic metal industries 1044 2319 14.2 I 10870 23491 13.7 734 1369 10.8 | 310 959 20.7 136 421 20.7 84 Metal produ:ts 1828 5482 26.5 1950 4182 18.6 | 646 1325 12.7 I 682 4108 34.9 848 4047 29.8 36 Non-olec.machinery etc 1809 4782 24.0 8468 16903 18.2 | 810 2928 23.8 I 499 1839 24.3 221 1018 29.0 36 Electrical machinery 712 2867 22.2 | 5935 17357 19.6 I 488 1323 18.9 I 244 1044 27.4 32 348 48.8L 37 Transport equipment 517 2826 32.7 I 7083 17120 16.8 | 279 751 17.9 | 238 -2075 48.4 105 3108 76.0k 88 Other manufacturing 1159 2036 9.8 771 2303 20.0 I 208 434 13.0 951 1802 9.1 835 3522 27.1 39 Repairing services 769 1725 14.7 1275 2808 12.7 I 284 564 12.1 I 475 1161 16.1 2567 10447 26.4 Total 20500 56708 18.1 88081 194401 14.5 8355 21181 18.8 12148 34548 19.0 I 18120 92259 31.2 Sources: ASI; Directory Manufacturing Establishments Survey; and Non-Directory Establishments A Own-Account Enterprises Surveys, 1978/79 and 1984/85. Table 7.4: AVERAGE GROWTH OF PRODUCTIVE CAPITAL OF SSI BY SUBSECTOR, 1978/79-1984/85 (in Rs. million) NIC CODE A DESCRIPT!qNS SSI FACTORIES * DME F A C T 0 R Y 3 E C T 0 R (ASI) DIRECTORY MANUFACTURING NON-DIRECTORY A DWN-ACCOUNT ---------------------- -----*----------- ------------------------------------ ----------- (DME) ESTABLISHMENTS I Medium A Large-Scale Unitel Small-Scale Industries | | (60 or more employees) | (49 or less employes) | I I I I Averag*l Average I Averag* Averagel Average 1978/79 1984/86 Growth I 1978/79 1984/85 Oro= 1978/79 1984/85 Growth I 1978/79 1984/865 Growth I 1978/79 1984/86 Growth -- -- - - --- - - - - - - -- - - - - - - - - - - - - - - - -------- ---- - (1) (2) (8) (4) I (6) (6) (7) I (8) (9) (10) I (11) (12) (18) I (14) (15) (18) 20-1 Food products 5878 11027 11.7 14277 2987 12.5 2706 8466 156. 2970 45682 7.4 I 6152 84731 48.0 22 Beverages,tobacco,etc. 863 2245 17.3 | 1959 4412 14.5 418 1084 347.8 447 1161 17.2 I 255 5579 87.2 23 Cotton textiles 2538 4528 10.1 | 11980 22508 11.1 862 1574 10.6 | 1678 2958 9.9 | 1815 82197 61.5 24 Wool,silk etc. 1452 3249 14.4 I 4864 15479 21.8 816 156 16.8 I 886 1688 12.4 | 349 2032 84.1 26 Jute textiles 54 119 14.0 | 427 905 18.4 25 41 8.4 | 29 79 17.9 I 25 222 43.5 26 Textile products 1815 3080 11.4 864 1959 14.9 568 1284 14.2 | 1059 1846 9.7 I 2297 90207 84.4 27 Wood,furniture,*tc. 1711 3584 13.1 509 1222 15.7 388 921 16.6 I 1323 2664 12.4 | 1611 47860 76.7 28 Paper A printing,*tc. 1886 6288 26.0 | 8380 21166 22.1 946 3976 27.1 690 2257 21.8 I 488 8214 36.9 29 Leather A fur products 481 918 11.8 | 775 1344 9.6 I187 567 19.9 I 294 356 3.2 I 895 10676 73.0 80 Rubber,petroleum,atc. 1450 4201 19.4 I 12012 88181 38.6 822 2570 20.9 | 628 16831 17.2 I 143 1497 47.9 81 Chemicals, etc. 8028 6654 14.0 I 88486 78168 14.7 I 1929 4983 16.9 I 1097 1721 7.8 144 2491 60.7 82 Non-metallic products 1891 4229 14.4 I 5839 22721 25.4 I 805 2418 20.1 I 1088 1816 8.9 | 831 1887 64.4 88 Basic metal Industries 2101 4887 15.1 | 40188 102280 16.9 I 1552 8898 16.6 I 549 989 10.8 I 156 840 28.6 84 Metal products 2474 508 12.6 2518 5835 15.1 1317 2712 12.8 1158 2328 12.3 | 874 20300 76.4 85 Non-elec.achinery etc 2202 6658 16.7 12475 24386 11.8 1378 3382 18.1 824 2176 17.8 I 377 8839 47.2 88 Electrical machinery 1078 8487 21.4 10203 25358 16.4 I 711 2231 21.0 I 865 1208 22.0 38 1468 83.5 87 Transport equipment 761 2176 19.1 I 17819 32786 10.7 | 505 1448 19.2 I 256 781 19.1 | 101 972 45.9 '-n 38 Other manufacturing 968 1578 8.4 | 1777 8275 10.7 | 327 661 12.4 I 641 911 6.0 678 10787 58.5 39 Repairing services 848 1505 10.1 | 2083 2383 2.1 | 398 884 9.4 I 445 822 10.8 2004 325681 69.2 Total 32818 74284 14.6 I 180392 461227 16.9 I 18448 42346 17.1 | 16373 81888 11.8 | 18533 347037 83.0 Sources: ASI; Directory Manufacturing Establishments Survey; and Non-Directory Establishments A Own-Account Enterprises Surveys, 1978/79 and 1984/86. Table 7.5: AVERAGE NUMBER OF ENPLOYEES OF SSI BT SUBSECTOR, 1978/79 NIC CODE & DESCRIPTIONS F A C T 0 R V S E C T 0 R DIRECTORY MANUFACTURING NON-DIRECTORY ESTABLISHMENTS ................******* (A S 1) & OUN-ACCOUNT ENTERPRISES Alt SSI MEDIUM-4 LARGE-I SMALL-SCALE I UNITS SCALE UNITS UNITS Average Rural Urban Average Rural Urban I I (49 or tess) I (1) (2a) (2b) j (3) (4) (5) (6) (7) I (8) (9) (10) I I I I 20-1 Food products 2.2 11.3 | 237.3 15.4 10.6 11.4. 8.9 1.7 1.6 2.0 22 Beverages,tobacco,etc. 3.0 19.4 | 149.8 23.8 17.6 18.8 14.7 1.5 1.4 1.8 23 Cotton textiles 3.0 11.8 492.5 18.4 11.3 12.2 10.7 | 2.3 2.3 2.4 24 Woo,sitk,etc. 3.5 10.7 | 276.7 15.7 | 10.2 9.6 10.5 | 2.2 1.9 2.7 25 Jute textiles 2.0 11.0 I 19951 16.1 | 9.7 8.6 10.3 1.9 1.9 1.9 26 Textile products 1.7 10.8 I 143.7 17.2 10.5 11.3 9.9 1.5 1.5 1.6 27 Vood,furniture.etc. 1.6 9.4 180.1 12.7 I 8.8 10.2 8.4 1.4 1.4 1.8 28 Paper & printing,etc. 4.3 10.1 288.1 16.6 8.3 8.9 8.3 2.4 2.0 2.5 29 Leather & fur products 1.5 12.4 184.2 21.7 10.0 12.2 9.8 1.4 1.3 1.9 30 Rubber,petroteum,etc. 2.9 10.3 253.6 j 17.9 1 8.0 7.9 8.1 1.6 1.3 2.2 31 Chemicals, etc. 4.3 11.8 254.6 19.9 9.5 11.1 8.8 1.7 1.5 1.9 32 Non-metalic products 2.7 19.5 194.7 | 17.2 19.9 22.4 12.3 1.7 1.6 2.1 33 Basic metal industries 4.6 12.0 | 388.2 | 17.4 8.9 10.4 8.6 2.0 1.7 2.2 34 Metal products 2.1 9.9 | 193.0 I 15.6 8.4 8.1 8.5 | 1.6 1.5 2.3 35 Non-elec.maechinery etc. 3.8 11.2 | 313.4 17.1 8.4 7.9 8.4 1.9 1.4 2.8 36 Electrical machinery 6.5 12.2 j 403.4 19.4 9.0 9.7 8.9 1.4 0.5 2.6 37 Transport equipment 2.4 12.3 | 690.9 17.9 9.2 9:6 9.1 | 1.4 1.3 2.4 38 Other manufacturing 2.3 10.2 223.5 16.7 9.9 10.9 9.7 1.7 1.6 1.8 39 Repairing services 1.5 10.9 147.1 20.0 9.3 8.6 9.5 1.4 1.2 1.7 Total 2.1 12.0 297.8 17.5 11.1 13.1 9.6 1.6 1.5 1.9 Sources: ASI (1978/79); Directory Manufacturing Establishments Survey (1978/79); and Non-Directory Establishments & Own-Account Enterprises Surveys (1978/79). Note: (i) Number of employees divided by number of establishments, each part-time worker in non-ASI establishments counted as 0.3. (ii) (2a) = ASI's SSI + DME + NDE + OAE; (2b) = ASI's SSI + DME. Table 7.6: AVERAGE FIXED CAPITAL OF SSI BY SUBSECTOR, 1978/79 (Ra. '000) NIC CODE & DESCRIPTIONS F AICT OR Y S E C T 0 R DIRECTORY MANUFACTURING NON-DIRECTORY ESTABLISHMENTS ....................... (A S 1) & OW-ACCOUNT ENTERPRISES --------------------******** **---------------------- |-------------------------- All SSI INEDIUM-& LARGE- SMALL-SCALE I UNITS SCALE UNITS UNITS Average Rural Urban Average Rural Urban (49 or less) j (1) (2a) (2b) 1 (3) I (4) I (5) (6) (7) (8) (9) (10) II I I 20-1 Food products 6.1 40.5 2154.3 | 135.5 25.8 21.6 35.6 4.1 3.7 6.5 22 Beverages,tobacco,etc. 2.5 18.4 540.9 | 29.0 14.2 6.0 34.1 1.1 0.9 1.8 23 Cotton textiles 3.6 20.7 3759.0 | 100.0 14.5 13.6 15.0 2.3 1.9 3.6 24 Woo,sitk,etc. 7.0 30.1 5157.3 | 146.3 19.0 21.5 17.7 j 2.6 1.7 4.3 25 Jute textiles 0.6 31.0 6314.7 | 100.0 13.6 20.0 9.7 0.4 0.3 0.7 26 Textile products 1.8 18.0 918.6 141.0 11.9 8.1 14.9 1.4 1.2 1.9 27 Wood,furniture,etc. 1.3 29.7 1388.6 I 58.9 25.0 26.3 24.5 1.0 0.8 2.2 28 Paper & printing,etc. 23.9 67.9 6424.4 | 198.8 j 33.1 58.2 31.8 9.3 4.0 10.6 29 Leather & fur products 2.4 108.1 2181.0 | 196.6 I 85.9 51.9 89.6 1.3 0.9 2.6 30 Rubber,petroleum,etc. 15.1 88.0 20352.2 232.2 45.3 58.8 41.4 | 2.3 0.9 5.9 31 Chemicals, etc. 35.9 130.8 16267.2 I 409.2 50.0 87.6 35.6 3.0 2.0 4.2 32 Non-metattic products 3.4 33.6 3270.1 | 139.5 | 18.7 19.5 16.4 1.5 1.4 2.9 33 Basic metal industries 37.6 132.7 23893.7 283.2 45.2 96.3 35.5 4.7 2.2 6.5 34 Metal products 5.0 54.2 j 2026.7 152.1 28.6 31.8 27.9 j 1.8 1.2 4.3 35 Non-eLec.mchinery etc. 24.7 95.1 5811.6 194.6 47.7 77.2 44.7 6.5 1.9 15.3 36 Electrical machinery 48.6 98.2 7244.1 235.7 37.9 65.6 35.2 4.5 1.1 9.0 37 Transport equipment 12.0 107.2 20470.7 197.9 56.5 76.3 53.5 1.9 1.2 8.2 38 Other manufacturing 2.9 16.7 3107.4 162.8 9.7 14.7 8.3 1.8 1.2 2.9 39 Repairing services 2.4 43.5 1091.1 131.1 28.9 19.5 30.4 1.9 1.3 2.8 Total 4.0 43.7 I 6416.2 162.2 23.4 20.8 . 25.3 2.1 1.7 3.4 Sources: ASI (1978/79); Directory Manufacturing Establishments Survey (1978/79); and Non-Directory Establishments & Own-Account Enterprises Surveys (1978/79). Note: (i) Fixed capital divided by number of establishments. (ii) (2a) * ASI's SSI + OME + NDE + OAE; (2b) = ASI's SSI + DME. Table 7.7: CAPITAL/LABOR RATIO OF SSI 8Y SUBSECTOR, 1978/79 NIC CODE & DESCRIPTIONS F A C T 0 R V S E C T 0 R DIRECTORY MANUFACTURING MON-DIRECTORY ESTABLISHMENTS ...........********* (A S I) & MN-ACCOUNT ENTERPRISES All SSI INEDIUM-& LARGE-1 SMALL-SCALE UNITS SCALE UNITS UNITS Average Rural Urban j Average Rural Urban (49 or less) (1) (2a) (2b) (3) (4) (5) (6) (7) j (8) (9) (10) I I I I 20-1 Food products 2737 35901 9080 I 8803 | 2420 1897 4004| 2426 2237 3198 22 Beverages,tobacco,etc. 838 950 | 3611 | 1220 | 805 318 2315 711 622 966 23 Cotton textiles 1210 1756 I 7633 5436 1287 1120 1405 1000 854 1473 24 Wool,siLk,etc. 1980 2823 18641 I 9311 1862 2248 1683 1207 880 1621 25 Jute textiles 318 2832 I 3165 6225 1405 2334 943 185 171 386 26 Textile products 1033 1661 6393 | 8194 1131 721 1511 926 822 1134 27 Mood,furniture,etc. 866 3167 7708 4643 2821 2579 2912 658 556 1224 28 Paper & printing,etc. 5575 6737 22298 11953 | 3975 6567 3826 3935 2011 4319 29 Leather & fur products 1541 8732 11839 9068 | 8551 4245 9134 902 731 1357 30 Rubber,petroleum,etc. 5269 8539 80243 12960 | 5625 7461 5119 1452 658 2637 31 ChemicaLs, etc. 8385 11051 63891 20523 j 5268 7862 4020 1817 1353 2229 32 Non-metallic products 1253 1720 16794 8089 941 870 1334 | 923 852 1398 33 Basic metal industries 8212 11049 | 61554 | 16283 | 5087 9256 4126 | 2344 1262 2935 34 Metal products 2372 54631 10504 I 9744 | 3386 3913 -3279 I 1101 858 1824 35 Non-lec.machfnery etc. 6548 8484 f 18545 | 11363 | 5686 9787 5290 | 3523 1374 5470 36 Electrical machinery 7528 8060 m17958 1?126 4216 6775 3943 | 3318 2405 3534 37 Transport equipment 4922 8710 29628 11073 | 6141 7972 5850 | 1373 918 3494 38 Other manufacturing 1275 1628 13905 9750 981 1357 856 1101 737 1583 39 Repairing services 1596 4003 7417 6556 3095 2272 3216 1349 1032 1715 Total 1896 3639 21546 9283 2115 1582 2638 1277 1072 1823 Sources: ASI (1978/79); Directory Manufacturing Establishments Survey (1978/79); and Non-Directory Establishments & Own-Account Enterprises Surveys (1978/79). Note: (i) Fixed capital divided by number of employees, each part-time worker in non-ASI establishments counted as 0.3. (if) (2a) a ASI's SSI + DNE + NDE + OAE; (2b) a ASI's SSI + ONE. Table 7.8: GROSS VALUE ADDED PER CAPITA OF SSI BY SUBSECTOR. 1978/79 NIC CODE & DESCRIPTIONS FACT 0 Y SEC 1 OR DIRECTORY MANUFACTURING WON-DIRECTORY ESTABLISHMENTS ******----------****** (A S 1) & OtN-ACCOUNT ENTERPRISES ....-........................ .....-- ............- ---- --** ---------- ----------- * AUt SSI IMEDIUN*4 LARGE-I SALL-SCALE I UNITS SCALE UNITS UNITS Average Rural Urban Average Rural Urban j (49 or less) (1) (2a) (2b) (3) | (4) (5) (6) (7) (8) (9) (12) I I I I 20-1 Food products 1805 2881 6736 6061 2167 1252 4942 1413 1151 2484 22 Beverages,tobacco,etc. 2024 2640 8551 j 3264 2305 1603 4485 1322 1255 1516 23 Cotton textiles 1477 2735 11430 j 2328 2787 1999 3345 995 839 1501 24 Uool,silk,etc. 2736 4187 23007 I 11425 3116 1900 3682 1406 1158 1719 25 Jute textiles 566 3941 6761 708 2617 2407 2722 | 387 351 923 26 Textile products 1726 3758 11792 j 9451 3296 1442 5014 | 1382 1061 2026 27 Mood,furniture,etc. 1517 5213 9754 6159 4992 3388 5598 1183 1021 2088 28 Paper & printing,*tc. 4831 6466 15895 | 9445 4889 3221, 4985 | 2525 1317 2766 29 Leather & fur products 1921 7177 12398 597 6950 8569 6731 1454 1181 2183 30 Rubber,petroleta,etc. 4996 7968 39087 | 11252 5803 6236 5684 I 1526 545 2993 31 Chemicals, etc. 8424 11290 38105 20121 5897 3839 6886 1363 1125 1576 0 32 Non-metallic products 1440 2227 12713 5710 1800 1663 2561 j 884 800 1438 33 Basic metal industries 6692 8784 22821 11596 5580 3479 6064 2365 1719 2718 34 etal products 2980 6250 17729 9311 4765 3411 5042 1637 1197 2943 35 Non-elec.machinery etc. 6128 8598 21823 10796 6462 6167 6490 2268 1342 3106 36 Electrical machinery 9242 9960 23924 13462 6649 10275 6262 3556 2621 3778 37 Transport equipment 5501 9460 17143 9795 9095 4989 9746 1792 1484 3230 38 Other manufacturing 2577 4536 18347 11043 4017 2733 4442 1611 1026 2388 39 Repairing services 2292 5601 10270 7989 4752 3048 . 5002 j 1951 1395 2596 Total 2152 4356 15863 j 8350 I 3277 1805 4723 | 1369 1057 2203 Sources: ASI (1978/79); Directory Nanufacturing Establishments Survey (1978/79); and Non-Directory Establishments & Own-Account Enterprises Surveys (1978/79). Note: (i) Gross value added divided by muber of employees, each part-time worker in non-ASI establishments counted as 0.3. (ii) C2a) = ASI's SSI + DME + NOE + 0AE; C2b) = ASIs SSI + DME. Table 7.9: GROSS VALUE ADDED PER RUPEE OF FIXED CAPITAL DY SUBSECTOR, 1978/79 NIC CODE & DESCRIPTIONS F A C T 0 R V U E C T 0 R DIRECTORY NANUFACTURING NON-DIRECTORY ESTABLISHNENTS .....................* (A S 1) & OWACCOUNT ENTERPRISES All SSI INEDIUN-9 LARGE-1 SNALL-SCALE I UNITS SCALE UNITS UNITS Average Rural Urban Average Rural Urban (49 or less) (1) (2a) (2b) (3) (4) (5) (6) (7) (8) (9) (10) 20-1 Food products 0.66 0.80 0.714 0.69 0.90 0.66 1.23 0.58 0.51 0.78 22 severages,tobacco,etc. 2.42 2.78 2.37 2.68 2.86 5.04 1.94 1,86 2.02 1.57 23 Cotton textiles 1.22 1.56 1.50 0.43 | 2.17 1.7 2.38 0.99 0.98 1.02 24 Woot,silk,etc. 1.38 1.48 1.23 1.23 | 1.67 0.85 2.19 1.16 1.32 1.06 25 Jute textiles 1.78 1.39 2.14 1.14 | 1.86 1.03 2.88 2.09 2.05 2.39 26 Textile products 1.67 2.26 1.84 1.15 j 2.91 2.00 3.32 | 1.49 1.29 1.79 27 Wood,furniture,*tc. 1.75 1.65 1.27 1.33 1.77 1.31 1.92 1.80 1.84 1.71 28 Paper & printing,etc. 0.87 0.96 0.71 0.79 1.23 0.49 1.30 0.64 0.66 0.64 29 Leather & fur products 1.25 0.82 I 1.05 0.84 0.81 2.02 0.741 1.61 1.62 1.61 30 Rubber,petroLem,etc. 0.95 0.93 j 0.49 0.87 1.03 0.84 1.11 1.05 0.83 1.14 31 Chemicals, etc. 1.00 1.02 0.60 0.98 1.12 0.49 1.71 0.75 0.83 0.71 32 Non*mtattic products 1.15 1.29 0.76 0.71 1.91 1.91 1.92 0.96 0.94 1.03 33 Basic metal industries 0.81 0.79 0.37 0.71 | 1.10 0.38 1.47 1.01 1.36 0.93 34 Metal products 1.26 1.14 1.69 0.96 1.41 0.87 1.54 1.49 1.40 1.61 35 Non-elec.mechinery etc. 0.94 1.01 1.18 0.95 j 1.14 0.63 1.23 | 0.64 0.98 0.57 36 Electrical mchinery 1.23 1.24 | 1.33 1.11 1.58 1.52 1.59 1.07 1.09 1.07 37 Transport equipment 1.12 1.09 j 0.58 0.88 | 1.48 0.63 1.67 1.30 1.62 0.92 38 Other manufacturing 2.02 2.79 1.32 1.13 j 4.10 2.01 5.19 1.46 1.39 1.51 39 Repairing services 1.44 1.40 1.38 j 1.22 1.54 1.34 1.56 j 1.45 1.35 1.51 Total 1.14 1.20| 0.74 | 0.90 j 1.55 1.14 1.791 1.07 0.99 1.21 Sources: ASI (1978/79); Directory Nanufacturing Establishments Survey (1978/79); and Non-Drectory Establishments & own-Account Enterprises Surveys (1978/79). Note: (i) Gross value added divided by fixed capital. (ii) (2a) a ASI's SSI + ONE + NDE + GAE; (2b) = ASI's SSI + ONE. 60 APPENDIX A2 INCENTIVES AND CONCESSIONS AVAILABLE TO SMALL SCALE INDUSTRY IN INDIA Introduction To further its policy of promoting the growth and development of small scale industry, the Central and State Governments, have adapted a wide array of incentives and concessions. Outlined below is a: documentation and listing of all these incentives and concessions, their applicability and eligibility and the appropriate implementing agencies. As noted in Chapter 6 of the main text, all of these incentives stem from the belief that new and/or small scale firms face particular and unique difficulties that make them vulnerable to competition from larger and more well established firms. In some cases, certain incentives such as those given to firms in backward ateas are available to medium and large firms, however the relative size of the benefit (subsidy) is larger for the small scale sector. Central Government Incentives Excise Duty Exemption Waiver of excise duty requirement for registered SSIs up to a certain sales turnover. For sales up to Rs.2m (Rs.3m for more than one item of production falling under two chapters) no excise duty is levied. For sales between Rs.2m to Rs.7.5m, the prevailing excise duty rate is reduced by 10 percentage points subject to a minimum 5% rate valorem. For sales above Rs.7.5m the normal, applicable excise duty rate applies. As an additional marketing incentive for SSI products, a 5% excise duty concession (MODVAT) is given to medium and large scale manufacturers on their purchases of inputs from SSIs. Income Tax Concessions A deduction of 20% of profit is allowed to new SSI units in rural areas, for a period of ten years. For those units operating is non rural areas the period of the concession is eight years. Product Reservation for Manufacture by SSIs This reserves production of a designated item exclusively to a small scale firm. At present 836 products are so reserved (and listed in Annexure 3). Procurement Reservation for Purchases from SSIs Certain items are exclusively reserved for procurement from SSIs by Central Government departments (see Appendix--- for more details). Over 400 items are reserved at the present time. In addition, for items not reserved, a price preference of up to 15%, is given to SSIs when in competition with medium and large firms. 61 Transport Subsidy Scheme SSIs located in specified remote and inaccessible areas are eligible for a transport subsidy equivalent to 90% of the transport cost for the movement of raw materials and finished goods from selected rail heads to and from the location of the unit. Scheme for Self Emplovment of Educated Unemployed Youth (SSEUY) This is a scheme intended to help the unemployed establish small firms. Complete financing is offered up to Rs.35,000 for youths between the ages of 18 and 35. Twenty five percent is given as a direct grant, and the balance is advanced as a loan by the commercial banks. The grant is kept as a fixed deposit with the Bank until the loan amount is repaid. No security is required. Industrial Extension Services A variety of industrial extension and technical assistance is provided to SSIs. This covers product quality testing, prototype development, training, technical consultancy services, marketing information and other services which are provided by Central and State agencies either free of charge or at highly subsidized rates. National Small Industry Corporation (NSIC) This entity was established by the Central Government in 1955 to promote and assist SSIs. NSIC provides a range of services including marketing of SSI products, and providing equipment on lease and hire purchase terms. The corporation is run as a commercial undertaking along commercial lines, however finance charges tend to be lower than prevailing market rates, and there is not full cost recovery on all services rendered. A list of activities is shown below. Machine Hire Purchase NSIC provides industrial finance (including foreign exchange) by way of supply of machines on hire purchase to SSI units. NSIC takes upon itself the entire purchase for the entrepreneur. The rate of interest depends on the location of the unit, type of entrepreneur and value of the machine. It varies from 12 1/2% to 16% per annum. Equipment Leasing Scheme for Modernisation. Expansion & Diversification This scheme is exclusively for existing and financially viable SSI units, and provides 100% finance for equipment selected by the user. The scheme is also applicable for imported equipment. Minimum value of equipment for leasing is Rs.100,000. The lease rent payable is Rs.20 per Rs.1000 of value of equipment per month, paid quarterly. Marketing Assistance Programme NSIC adopts a consortium approach by assisting a number of SSI units producing the same products. Orders for bulk quantities are secured by 62 NSIC and farmed out to the small units. Testing facilities are provided or arranged for quality control and standardisation. NSIC also provides a bill discounting facility by releasing 90-95% payment on receipt of proof of despatch. Turnkey Assistance for Small Industrial Projects NSIC provides a package of services including preparation of industry profiles & project reports, selection and supply of plant & machinery; experts for commissioning & running of units, training, studies for rehabilitation, upgradation, diversification etc. Prototype Development & Training NSIC is running Prototype Development & Training Centres, with foreign collaborations, for development of machine prototypes; providing common facilities for production and testing; training for entrepreneurs etc. The prototypes.developed are passed on, to manufacturing units for commercial production together with know-hou. Fees charged varies'from case to case. Financial Concessions There are a vast array of financing schemes available targetted at assisting SSIs. Commercial Banks, as per directions laid down by the Central Government and the Reserve Bank of India provide working capital and term loans to SSIs at below market rates. The main agency involved however is the Small Industries Development. Bank of India (SIDBI). This is a wholly awned subsidiary of the Industrial Development Bank of India (IDBI). It provides refinancing facilities for 18 State Financial Corporations, 26 State Industrial Development Corporations/State Industrial Investment Corporations, 76 Commercial Banks, 196 Regional Rural banks, 11 State Cooperative Banks and 542 Central and Urban Cooperative Banks. Interest rates are below those prevailing in the market (and very from scheme to scheme) and a variety of other concessions are offered such as higher allowable debt/equity ratios and for units in specified backward areas, SIDBI treats other development loans (such as interest free sales tax loans granted by State Governments) as eligible equity contributions. A listing of the various financing schemes and the interest rate structure is shown in Annexure 1. In addition to the above financial services there is a credit guarantee scheme, operated by the Insurance and Credit Guarantee Corporation. The scheme is intended to encourage banks and financial institutions to grant loans to SSIs. The guarantee fee of 1-1/2% is passed on to the borrower, when the borrowed amount is above Rs.25,000, however, the borrowers liability of interest rate and guarantee fee cannot exceed 16%, which is considerably below present market rates. State Government Concessions A variety of incentives are offered by the State Governments and Union Territories. Annexure 2 illustrates the range of concessions offered. Outlined below are brief description of the types of subsidies and concessions given, although they do not apply to all States. 63 Capital Investment Subsidy A certain percentage of the fixed capital investment is subsidised by the State Government under this scheme. The percentage varies according to the category of backward area where the unit is located. The rate is also not uniform in all the states. It ranges from 10 percent to 35 percent subject to a ceiling fixed by the States. Sales Tax Exemption/Deferment Units are exempted from paying sales tax on purchase of materials and sale of finished products for a specified number of years from the date of starting commercial production. The quantum of incentive and the period during which it is to be availed of depends on the location of a unit. This may range from 5 years to 10 years subject to an overall ceiling determined as a percentage of fixed capital investment. The incentive ceases if the ceiling is reached earlier. Alternatively, units tan opt for sales tax dferment. In this case units are allowted to retain the sales tax payable to the Government for an initial period of generally 5 years, subject to the overall ceiling mentioned above. The deferred amount is paid to the Government in five annual instalments from the sixth year onwards without any interest. Powerlglectricity Duty Power charges are subsidised in certain states generally for the first five years of commercial production. In some places, units are exempted from paying electricity duty. Some States also give a subsidy on the cost incurred by the units for drawing power connection from the mainline to the factory shed. Water Charges In some States concession is given on water charges generally to the extent of 25 percent for an initial five years of production. Stamp Duty Exemption Tiny/small units are generally exempted from paying stamp duty for execution of deeds required to avail of the various incentives of the State/Central Government. In certain States the exemption limit for small units is 50 percent of the stamp duty. Octroi Duty New units in some States are exempted from the payment of octroi duty on capital goods and raw materials. This is generally available for a minimum period of 5 years from the date of provisional registration of the unit. Interest Subsidy Some States provide interest subsidy on loans to small scale units. Subsidy is generally given for the interest amount beyond 8 percent payable 64 by the unit. This is an extension of a Central Government Scheme which is also operated by the States. Price Preference On purchases made by the State Government department and undertakings the SSI units are given price preference to the extent of 15 percent over the prices quoted by the large industries. This is similar to the price preference policy of the Central Government. Manpower Development (Training) A few states partially reimburse the cost of training workers, incurred by SSI units, to improve their skills. Know-how Subsidy Cost of acquiring technical know-how from the National Research Development. Corporation (NRDC) or other recognised agencies is subsidised by some states to encourage new product/technology development. Infrastructure/Shed Rental Facility Fully developed industrial land is provided to entrepreneurs to set-up their units. The cost is substantially subsidised. The extent of subsidy vary from state to state and according to location of the units. Simi-rly, built-up industrial sheds are provided to units at rents below either market rates or below cost of provision of the facility. Feasibility/Project Report Subsidy Cost of feasibility/project reports prepared by units through recognised consultants are subsidised. The quantum of subsidy varies and normally there is a ceiling to the amount of subsidy. Generating Set Subsidy Units installing diesel generators to overcome power shortage are given subsidy on the capital cost involved, at a prescribed rate subject to a maximum limit. Hire-Purchase Assistance SSIC's provide machinery on hire-purchase to SSI units. The scheme is similar to the one operated by the NSIC at an all India level. Special Capital/Bridging Loan Soft loans, normally to the extent of 10 percent of the project cost, is provided to bridge the shortfall in promoter's contribution for projects promoted by technically qualified entrepreneurs. Refinance from IDBI is also available under their Seed Capital Scheme. Loans up to Rs.400,000/- are generally operated by SFCs and beyond that, up to Rs.1.5 million, by SIDCs. The interest rate is one percent. 65 Assistance for Quality Improvement Some States have quality marketing centres located in areas of concentration of industries. These centres have testing facilities to check product quality. They also guide manufacturers in quality improvement. Nominal charges are levied for testing services. Subsidy is also provided to units on testing equipment purchased by them and on expenses incurred in obtaining quality marks of the Bureau of Indian Standards (BIS). 66 FIGURE 1 CENTRAL GOVERN1E1T UICENT IVES FINNICIAL 0OM ER INCENTIVES IM11CENTIVES SSTATE GOV EXCISE INCOE TAX SIDO NSIC (Refinance (DUDIC) DEPTT DEPART1ElT Schemes Schemes Schemes) EXCISE INlCOME' TRANSPORT SEEUY DUTY [AX - RESERVATIONS OF ITEMS FOR IlNAIJ- SUBSIDY SCHElE CONCE- CONCESSION FACTURE IN THE SSI SSIONS - RESERVATION OF ITEHS FOR PURCH- ASE FROil THE SS1 SFCs SIDC1- DiVIKS .. - PROVIDING ECO1101IIC INFOR1ilOtt11 S11C '- TECHNICAL ASSISTANCE - ]ESTING & QUALITY 111PROVEENT D1 SCHElKE - INDUSTRIAL 11NIAGElMENT & TRAIN-. - EQUITY FUND SCHEriE ING - TRAINING OF 11ORKERS - NATIONAL EQUITY FUND SCHEME - COMPOS1DE LOAN SCHEiE - SCHERE FOR SC/ST &-PHYSICALLY HNIDICAPPED ENTREPRENEURS - SINGLE WINDOW SCHEiE - U11EN ENTREPRENEURS SCHEiE HlARKET11IG RACHINERY TRAINING TURN- - 11AHiILA UDHYAN N1DH SCHEiE ASSISTANCE ON HIRE- OF UORKERS KEY E - EX-SERVICEiEN SCHEHE PURCHASE RVICE - REFINANCE ASSISTANCE FOR QUALITY CONTROL EQUIP1IENT - D.G. SETS ASSISTANCE - REFIAICE FOR POLLUTION CONTROL EGUIPHENTS PROTOTYPE EGUIPMENT - FEFINANCE FO RENEWABLE ENERGY SYSTEIS DEVELOPiEllT LEASING - REFINANCE FOR JiDDERNISATION - EQUIPMENT REFINANCE SCHEME - REFINANCE FOR REHABILITATION - EXPORT INCENTIVE SCHEME GOVT. PRICE FORIIING C060- - BIS/AGMARK INCENTIVE PURCHASE PREFERENCE RTIUi FOR I1KTG - REFINANCE FOR INDUSTRIAL ESTATE - REFINANCE FOR MOBiLE SALES VANS PURCHASE - ASSISTANCE TO HARKETING ORGANISATIONS - BILLS REDISCOUTING SCHElE - SHORT TER"1 BILLS REDISCCUNTING - DIRECT DISCOUNTING OF DILLS .) 7 11J - DIRECT ASSISTANCE TO SPECIALISED MARKETING AGENCIES Gj , c IE 6 - ASSISTANCE TO SMALL ROAD TRANSPORT OPERATORS(SRTO) - INTEREST SUBSIDY FOR INLAND WATER TRANSPORT ENTREPRENEURS ACGUISATION OF ELECTRO-MEDICAL AND OTHER EQUIPiERI 67 APPENDIX A2 ANNEXURE 1 REFINANCE INTEREST RATE STRUCTURE I tier II tier Ceiling SIDBI's Ceiling SIDBI's on primary rate for on primary rate for lenders' refinance lenders' refinance rate on rate on loan loan (a) Basic Lending Rate 14.0 10.5 15.0 *11.5 (Including assistance under modemisation scheme) (b) For new units In 12.5 9.0 13.5 10.0 backward areas (o) For units in non- backward areas * All loans upto 13.5 1P.0 14.5 11.0 Rs.25 lakhs (i) All loans exceed- 14.0 10.5 15.0 11.5 Ing Re. 25 lakhs (d) Composite Loans to artisans, village/ cottage & tiny units (upto Rs.50,000 per unit) - Backward areas 10.0 6.5 11.0 7.5 (i) Non-backward areas 12.0 8.5 13.0 9.5 (e) Industrial estates - () Backward areas 12.5 9.0 13.5 10.0 (1) Non-backward 14.0 10.5 15.0 11.5 areas (f) Rates of Interest under specific schemes/ purpose irrespective of location of the unit - () Rehabilitation 10.0* 9.0 assistance (ii) Units set up by - 10.0 6.5 SC/ST entrepreneurs & handicapped persons (upto Rs. 50,000 per unit) (il) Manufacture or 12.5 9.0 13.5 10.0 installation of renewable energy/ energy saving systems (iv) Quality Control . . 13.5 11.0 68 I tier II tier Ceiling SIDBI's Ceiling SIDBI's on primary rate for on primary rate for lenders' refinance lenders' refinance rate on rate on loan loan (g) Road transport operators 15.0 11.5 (upto six vehicles) (h) Equipment Refinance - 15.0 12.0 Scheme (1) Single Window Scheme * 15.0 11.0 Working capital loan () All loans upto - - 15.0 11.0 Rs. 2 lakhs . (ii) All loans exceeding * 16.5 12.5 Rs. 2 lakhs () Scheme of assistance for 12.5 9.0 13.5 10.0 women entrepreneurs/MUN Scheme (k) Ex-Servicemen Scheme - () Backward areas 12.5 9.0 13.5 10.0 (ii) Non-backward 13.5 10.0 14.5 11.0 (il) Transport - 15.0 11.5 operators (Iv) Hotels, hospitals & tourism related activity - (a) backward areas 12.5 9.0 13.5 10.0 (b) non-backward 14.0 10.5 . 15.0 11.5 areas () D.G. Sets (Irrespective 15.0 11.5 of location and size of loan) (m) Equity assistance 1% service charge under NEF/MUN/SEMFEX Scheme (n) Asslstance for 15.0 11.5 acquisition of electromedical and other equipment (0) Assistance for Purchase * 15.0 11.5 of mobile salesc vans (p) Assistance to marketing 15.0 11.5 organisations 69 * Primary lending institutions may increase the rate upto 11.5% p.a. In case where the higher rate is justified on the basis of anticipated profitability of the borrowers. Note: (a) First tier rates are applicable during implementation (construction) period and second tier rates for the remaining period of the loan/refinance. Wherever two tier rates are not Indicated, revised rates would apply. (b) Concessional rates for backward Rrea will be applicable to new projects only. 一‘’頗， 糒騵甲嚮龍者鑒糒蹤鳥饗耑騾粔豔黑兀驟農饗認嚮驟駕譯豔～二 號一 N� Н,• ' 1�11tЭ�31 - �1 '�tl�1IHJtlЧ 4 1Ntl1d - Ч!д 'Э5ltld - д'15'!К1 1�3fDHd - �д 'A11t!�1о llГ�115ЭANI ltllIdtl7 - 51� `1t134S3MII 1H1Idtl'J Q31I1d - I�! '10I171Ч SN - Ч `Фk5f1aU SИ -�1 к Q�1 SK1:1tl'.ItlAT': : ;-; pQ W ' % : : : : : : : : S : : : н � : г с: г: г: с: . : : : suletsta и3ио : . Р,� � : хг! г xs•и г: т; п с г: i : с: � � ио��2и� : w ? , : t: с г: : zs! с sэ<~ t: : : xs•г! с: : е Аьтзiа�. : i а• s � ; : с: п r, п с: ! е ; r, ; и аlт�и� : � ' ' . . : : : . а . i � : : �: ; : , : i : . 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' = t ! 1 t • i ! ! t 1 A�t�MA1 1 1 t lб�tldd 1 1-SI 1М 3 ! . : 1Б�rtld 1 S 1 1l1МlЯ1М ! 16ЭGtlNd ! ! : t !�1 ! ! 2 7Ар ! 18�tl1d !-G�1N 1 1 t :�,иlaw : и�rюи : иrмlиааn !� nми : iиьоьмlн : амlУиын s lиимгге s�! пгеа :-т�аа� ! мммlе : ьа�ч s-иаирю s vмтч : иакаа : ssolsa�m rs�ntlиэ�a !м•s� � г�м аиаи�ае 1sи�I -� и:тз1� l.и, мии тмnоие ssзl s�эмr - е 1ье�зlиз l.suпusla �е�паиг а, аааrасп srз<и асаи:гя lsон -<+ �nl ' аоциьоа<т�lк�инэюо э1и1s элtlзэаs� зи м лtilsl�п э�пs пиs ц заициnа sotssэlмmгs�+t1lв�п до иаtlм!!�lд�с пиа+ APPENDIX A2 73 ANNEXURE 11 i ro ro -------------- r. FREE - - - - - - - - - - - - - - - - - - - -- Is Lo LO 92 RE ---- IA I I APPENDIX A2 74 ANNEXURE II L 5 ii 000 II:" L3 1!! Le 0 La ..a 0.s ii 1 L e 0 o0L I- - - - - - - - -- II 1 -I 1 1' ---~- - ---- Lm 19 5 EL 75 ANNENDIX AZ 編不必必必不‘11 中 76 APPENDIX A2 ANNEXURE ii La .. .. .. .. .. .. .. .. .. .. .. .. 50 rå kb 92 - - - - - - - - - - - - fem z m RI 13 - - - - - - - -- - - - -- - - - - - - 77 APPENDIX A2 ANNEXURE 1I . - I1 l • i ; .. . . . . . . . . ..... .. ... ......... - Le i --a - 5lillf***J ... l ------ - - - - - - - - - - -- - - - - - - -- - - !fl I. I 111 al lals ;a l i i - 8 -- - -...... .................--...............................- - - - ..-.. 78 APPENDIX A2 ANNEURE 3 LIST OF ITEMS RESERVED FOR EXCLUSIVE MANUFACTURE IN SMALL SCALE SECTOR (AS AT THE END OF MARCH, 1989) PRODUCT CDE NAME OF THE PRODUCT 20-21 ***Food and Allied Industries 201801 Ice Cream 202501 Pickles & Chutneys 202901 Vinegar 204200 Rice Milling 204300 Dal Milling 205101 Bread 20530101 Biscuits 20530102 Pastry 209201 Confectionery (Except Chocolates) 21100101 Rapeseed Oil except } solvent extracted ) . Othe)r than cases 21100102 Mustard Oil except } of State Agro Cooperatives solvent extracted } and Growers Cooperatives ) 21100103 Sesame Oil except ) solvent extracted } 21100104 Ground nut oil except solvent extracted 214302 Sweetened Cashewnut products 216201 Poultry feed 216201 Ground and processed spices 219201 Ground and processed spices 219502 Tapioca sago 219504 Tapioca syrups 26 *Textile products including hosiery 260101 Cotton cloth knitted 260102 Cotton vests knitted 260103 Cotton socks knitted 260104 Cotton undergarments knitted 260106 Cotton shawls knitted 260199 Other cotton knitted wears 260201 Woollen cloth knitted 260202 Woollen vests knitted 260203 Woollen socks knitted 260204 Woollen scarves knitted 260205 Woollen undergarments knitted 260206 Woollen caps knitted 260207 Woollen shawls knitted 260208 Woollen gloves 260209 Woollen mufflers knitted 260299 Other woollen knitted wears 32A Art silk/Man-made fibre hosiery 260301 1. Synthetic knitted socks and stocking 260302 2. Synthetic knitted underwears such as vest, briefs and drawer 260304 3. Synthetic knitted outerwears such as jersey Slipover, pullover, cardigans and jacket 260308 4. Synthetic knitted children wear such as baby suits, knicker, frock, underwear and outerwear 260309 5. Synthetic knitted fabrics except high pile fabric made by silver knitting 260311 6. Synthetic knitted swim wear such as trunk and costume 260312 7. Synthetic knit wear such as scarf, muffler, shawl cap, ties, blouse and jean 260313 8. Synthetic knitted Shirt, T-Shirt, Collar Shirt and Sports-Skirts 79 260314 9. Synthetic knitted hose 260315 10. Synthetic knitted gas mantle fabric 260316 11. Other synthetic knit wear 261102 Stove wicks 264104 Readymade garments 266901 Cotton belting 266902 Belt lacing 266903 Measuring Tapes--Cotton 27 Wood and Wood products 271001 Sawn timber 27210301 Wooden orates 272201 Tea chest plywood 273002 Seasoned wood 279914 Wooden sewing machine covers 273012 Cable drums for AA & ACSR conductors 273013 Tent poles 274202 Wooden plugs 274301 Handles--Wooden and bamboo 27440101 Teak fabricated round block 276001 Wooden furniture and fixtures 276002 Wooden storage-cupboards 276003 * Wooden stbrage shelves & racks 279908 Wood wool slabs 28 Paper products 280402 Waxed paper 280403 Bituminised water proof paper 280905 Decorative papers 280906 Corrugated paper & boards 281101 Paper Bags 281102 Composite containers (unlaminated) 28120101 Paper board cartons (unlaminated) 281301 Paper cups/plates 281902 Paper envelopes 281904 Corrugated fibre board containers 283102 Paper twines, strings and ropes 283201 Paper cones 28320201 Paper Tubes (Except heavy duty resin impregnated conical spinning tubes for textile industry) 283901 Drinking straws 283902 Paper napkins including facial tissue napkins 283903 Gummed tape 283906 Teleprinter r-lls 283907 Stencil paper 283908 Tele-Tape rolls 283909 Slitting of ordinary paper into rolls & sheets 283910 Toilet paper rolls and sheets 283911 Paper straps 283912 Stickers, labels of gummed paper etc. 283913 Treated tracing paper 283914 Gummed paper for stamps 283915 Gummed paper other than for stamps 283916 Sanitary towels 283917 Transfer labels 285002 Exercise books and registers 285005 Letter pads 285006 File covers and file board 29 Leather and Leather products including Footwear 290201 Sole leather 290202 Kattai and bunwar leather 290302 Picking band leather 290303 Leather pickers and other leather Accessories for textile industry 290401 Vegetable tanned hides and skins--Semifinished 290501 Chrome tanned hides & skins semifinished 290602 Lining leather from goat & sheep skins 29090201 Laminated leather belting 80 290905 Harness Leather 291101 Leather shoes 291102 Leather shoes upper closed 291301 Leather sandals and chappals 292001 Leather garments 293101 Leather suit cases and travel goods 293201 Leather purses & hand bags 293202 Fancy leather goods & other novelty items 293901 Watch straps leather 293903 Leather cases and covers of all types 299004 Industrial leather gloves 299005 Leather washers and laces 300-302 Rubber products 26720101 Rubberised cloth--by doctor's blade technique 269304 Canvas hoses 300301 Tyres--Cycle and Cycle rickshaw 3003020 Tubes--Cycle & Cycle rickshaw 30040201 Camel-Back-Tyre retreading materials (Except cold curing tyre materials procured) 301102009 Moulded rubber soles and heels for Footwear (except for captive consumption) 302101 Surgical Gloves--latex 302102 Hotwater bags--Rubber 302103 Ice Bags rubber 302301 Rubber balloons 30240201 Rubber hose pipes--excepting braided hoses 30240202 Rubberized canvas hose pipbs--excepting wire braided high pressure hydraulic hoses 30240: Rubber tubes 302502 Rubber washers 30250501 Oil seals--Rubber (Other than hydro-dynamic seals for high pressure applications) 30250901 Rubber thread (Except bare rubber thread of over 80 gauges and heat resisting rubber thread) 302510 Rubber eraser 302511 Hard rubber battery containers 302514 '0' rings--rubber 30260101 Latex foam & latex foam products (Except synthetic rubber cost and aprons and lubricating pads) 302702 Microcellular sheets 302904 Other dipped latex products except contraceptives. 31060102 Ortho amino phenol 318651 Rubber blowing agents--hexamine based 303 Plastic Products 301201 Full PVC footwear chappals, sandals & shoes 303101101 Blow moulded plastic--Hd EE--PVC containers upto 5 litre capacity excluding stretch blow moulded plastic containers 303201 Acrylic sheets 303303 Fibre-Glass reinforced plastic products other than the following: (a) SMC & DMC and its mouldings (b) Continuous Filament Winding (Pipes above 600 mm diameter) (c) Pultruded products (d) FRP sheets by continuous process 30330402 Hessian, paper and cloth to polethylene laminations--Straight and sndwitched by extrusion coating process except paper to polythelene laminations for integrated packing 303402 H.D. Polythylene Mono-Filament (Except for captive use for rope manufacturers) 303403 Polythylene Films with thickness less than 0.10 mm except co-extruded films cross linked polymer films and high density molecular films 30350102 Products of polythylone films as coloured printed films & bags 303601 Spectacle frames by fabrication or by injection moulding 303702 Polypropylene tubular films (except biaxially oriented) 30370301 Industrial items from engg. plastics material by fabrication process only 303704 Plastic collapsible tubes (except laminated) 303705 Polythylene box strapping 30370601 Polythylene and PVC flexible hoses (except wire braided hoses) Injection moulding theme plastic products 303707 1. Handles 303802 2. Soap cases 303804 3. Buckets 81 303808 4. Cups 303810 5. Lunch boxes 303812 6. Water jugs 303816 7. Saucers 303818 8. Tumblers 303831 9. Bins for various sizes 303832 10. Washing bowls 303833 11. Salad baskets 303834 12. Dust pans and bins 303835 13. Hair brushes 303836 14. Umbrella frames 303837 15. Hinged hair pins 303838 16. Babies bath tubs 303839 11. Hugs q03840 18. Plates and dishes 303841 19. Salt containers 303842 20. Toys 303843 21. Pencil boxes 303844 22. Coffee pots 303845 23. Coffee pot covers 303846 24. Table calender stands 303847 25. Coffee table trays 303848 26. Waste paper baskets 30390101 Flexible polyurethane foam products 30390201 Polyurethane shoe soles 303902 Polystyrene foam products (except slabs for expandable polystyrene beads manufacturers) 303903 Plastic buttons Fabricated plastic products as follows:-- 30390401 1. Advertising novelties 30390402 2. Desk calendar 30390403 3. Pen stand 30390404 4. Plastic toys 30390405 5. Decorative and industrial fixtures 30390406 6. Street lights 30390407 7. Corridor Lights 30390608 8. Passage lights 30390409 9. Building models (Prototype) 30390410 10. Machine models (P >totype) 303907 HDPE Woven sacks (Except sacks manufactured on circular looms) 303909 Plastic combs 30391201 PVC pipes including conduits--Upto 100 mm dia 30393501 Fittings for PVC pipes including conduits upto 110 mm dia 303913 Zip fasteners--Non-Metallic (Except in the case of integrated plants manufacturing all components) 30390501 Compression moulded plastic products excluding decorative and inductrial laminates 303916 Plastic rain coats 303925 Plastic bottle caps 303926 Flash light torch cases--plastic 303927 Polyester sheets 303928 Other thermo-WGlded plastic products such as: 30392801 1. Shopping bags 30392802 2. Diarie 30392803 3. File cover 30392804 4. Badges/Folders 30392805 5. Advertising materials 30392806 6. Wallets 30392807 7. Passport covers 30382808 8. Tool kit covers 30382809 9. Medical disposables 30392810 10. Industrial packings for calculators, microphones etc. 30392811 11. Inside assembly of brief cases 30392812 12. Key chains 30392813 13. Identity cards and visiting cards 30392814 14. Albums 30392815 15. Textile welding for garments 303929 Contact lenses 303930 Watch straps PVC 82 Injection moulding therma plastic products 303931 P.P. Wocen sacks (Except sacks manufactured on circular looms) 303962 Toilet seats 303963 Toilet lids 303964 Letter/Words 303965 Pull-up spout pourer 307001 Coke briquetter (Except lignite and for integrated plants) 307002 Coal Briquetters (Except lignite and for integrated plants) 31 *Chemicals and chemical products Laboratory chemicals and reagents 31922001 Ammonium sulphate--Lab. 31922002 Ammonium fluoride--Lab. 31922003 Ammonium carbonate--Lab. 31922004 Antimony potassium tartrate--Lab. 31922005 Aluminium sulphate--Lab. 31922006 Amonium solution--Lab. 31922007 Cadmium acetate--Lab. 31922008 Cadmium carbonate--Lab. 31922010 Calcium chloride--Lab. 31922011 Chromic acid--Lab. 31922012 Cobalt sulphate--Lab. 31922013 Cobalt nitrate--Lab. 31922014 Cupric nitrate--Lab. 31922015 Cuprice nitrate--Lab. 31922016 Dimethyl sulphate--Lab. 31922011 Ferrous sulphate--Lab. 31922019 Lead acetate--Lab. 31922020 Lead nitrate--Lab. 31922021 Magnesium trisilicate--Lab. 31922022 Nickel carbonate--Lab. 31922023 Nickel formate--Lab. 31922024 Nitric acid--Lab. 31922025 Potassium nitrate--Lab. 31922026 Potassium chloride--Lab. 31922027 . Hydrochloric acid--Lab. 31922028 Potassium Iodine--Lab. 31922029 Potassium sulphate--Lab. 31922030 Sodium nitrate--Lab. 31922031 Sodium oxalate--Lab. 31922032 Sodium sulphate anhydrous--Lab. 31922033 Silicagel--Lab. 31922034 Silver nitrate--Lab. 31922035 Sulphuric acid--Lab. 31922037 Acetic acid glacial--Lab. 31922038 Acetone--Lab. 31922040 Iso-amylacetate--Lab. 31922041 Amylalchohol 31922042 Benzene--Lab. 31922043 Butylalcohol--Lab. 31922044 Chloroform--Lab. 31922045 Diethylether--Lab. 31922046 Ethyl alcohol--Lab. 31922047 Ethylacetate--Lab. 31922048 ISO ayl alcohol--For milk testing--Lab. 31922049 ISO-propylalcohol--Lab. 31922050 Methylalcohol--Lab. 31922051 Petroleum ether--Different distillation ranges--Lab. 31922052 Petroleum other--For chromotography--Lab. 31922053 Toluene--Lab. 31922054 Nickel sulphate--Lab. 31922055 Zinc oxide--Lab. 31922056 Para-Aminophenol--Lab. 31922057 Potassium citrate--Lab. 31922058 Cadmium chloride--Lab. 31922301 WATER SOLUBLE WOOD PRESERVATIVE BASED ON COPPER CHROME, ARSENIC BORIC COMPOUNDS. DYE STUFF BASIC DYES 31220301 t. Basic yellow 2 41000 31220302 2. Basic green 4 42000 31220303 3. Basic green 1 42040 83 31220304 4. Basic violet 14 42510 31220305 5. Basic violet 1 42535 31220306 6. Basic blue 7 42595 31220307 7. Basic violet 10 45170 31220308 8. Basic blue 9 52015 (Methylene Blue) 312206 Optical whitening agents for cotton textiles A20 DES Direct 31220701 1. Direct yellow 8 13920 31220702 2. Direct yellow 17 18855 31220703 3. Direct yellow 9 19540 31220704 4. Direct yellow 29 19556 31220705 5. Direct red (Congo Red) 31220706 6. Direct red 13 22155 31220707 7. Direct dye 22160 [Brilliant Congo C(A)] 8. Direct red 1 22310 31220709 9. Direct brown 2 22311 31220710 10. Direct brown 59 22345 31220711 11. Direct orange 1 22375 31;20712 12. Direct yellow 20 22410 31220713 13. Direct orange 1 22430 31220714 14. Direct violet 45 22510 31220715 15. Direct violet 1 22570 31220716 16. Direct black 29 22580 31220717 17. Direct blue 2 22590 31220718 18. Direct blue 6 22610 31220719 19. Direct red 61 23040 31220720 20. Direct red 2 23500 31220721 21. Direct red 7 24100 31220722 22. Direct blue 8 24140 31220723 23. Direct blue 15 24400 31220724 - 24. Eirect blue 1 24410 (Bordeaux-B) 31220725 25. Direct yellow 4 24890 31220726 26. Direct yellow 12 (Chrysophenine) 31220727 27. Direct violet 7 27855 31220728 28. Direct violet 31 27880 31220729 29. Direct violet 9 27885 31220730 30. Direct violet 51 27905 31220731 31. Direct red 81 28160 31220732 32. Direct yellow 44 29000 31220733 33. Direct red 31 29100 31220734 34. Direct orange 26 29150 31220735 35. Direct red 23 29160 31220736 36. Direct red 83 29225 31220737 37. Direct brown 1 30110 31220738 38. Direct brown 95 30145 31220739 39. Direct black 38 30235 31220740 40. Direct green 1 30280 31220741 41. Direct green 6 30295 31220742 42. Direct green 8 30315 31220743 43. Direct brown 75 30325 31220744 44. Direct blue 71 34140 31220745 45. Direct black 56 34170 ACID DES 31220761 1. A:id yellow 36 13065 31220762 2. Acid orange 7 15510 31220763 3. Acid red 88 15620 31220764 4. Acid red 18 16255 (Food Red 7) 31220765 5. Acid red 1 18050 (Food Red 10) 31220766 6. Acid violet 7 18055 (Food Red 11) 31220767 7. Acid yellow 11 18820 84 31220768 8. Acid yellow 76 18850 31220769 9. Acid yellow 17 18965 (Food Yellow 5) 31220770 10. Acid yellow 23 19140 (Food Yellow 4) 31220771 11. Acid brown 55 20100 31220772 12. Acid orange 24 20170 31220773 13. Acid brown 14 20195 31220774 14. Acid bldck 1 20470 31220775 15. Acid red 85 22245 31220776 16. Acid yellow 42 22910 31220777 17. Acid red 128 24125 31220778 18. Acid blue 113 26360 31220779 19. Acid red 142 27000 31220780 20. Acid red 73 27290 31220781 21. Acid red 17 16180 31220782 22. Acid yellow 73 45350 WAPHTHOLS 31220801 1. Azoic coupling Components 2 37505 (Naphthol AS) 31220802 2. Azoic coupling Component 10 37510 (Naphthol ASE) 31220803 3. Azoic coupling Component 17 37515 (Naphthol AS-BS) 31220804 4. Azoic coupling Component 19 37520 (Naphthol AS-TR) 31220805 S. Azoic coupling Component 8 37525 (Naphthol AS-TR) 31220806 6. Azoic coupling Component 20 37530 (Naphthol AS-OL) 31220807 7. Azoic coupling Component 24 37540 (Naphthol AS-LT) 31220808 8. Azoic coupling Component 14 37558 (Naphthol AS-PH) 31220809 9. Azoic coupling Component 4 37560 (Naphthol AS-BO) 31220810 10. Azoic coupling Component 7 37560 (Naphthol AS-SW) 31220811 11. Azoic coupling Component 5 37610 (Naphthol AS-G) 31220901 Phtbalocyanin Blue (Except for Captive consumption for manufacture of Phthtele- Cyanine green). REACTIVE DYES 31221001 1. Brilliant red M-5B Reactive Red--2 31221002 2. Brilliant red H-7B Reactive Red--4 31221003 3. Rubine M-5B Reactive Red--6 31221004 4. Scarlet H-CR Reactive Rud--8 31221005 5. Brilliant Red M-8B Reactive Red--11 31221006 6. Brilliant red H-8B Reactive Red-31 31221007 7. Rubine H-BN Reactive Red--32 31221008 8. Pink RB Reactive Red--37 31221009 9. Brilliant red EB Reactive Red--73 31221010 10. Brilliant pink B Reactive Red--74 31221011 11. Brilliant purple H-RR Reactive Violet--1 31221012 12. Brilliant magenta B Reactive Violet--I 85 31221013 13. Brilliant violet PR Reactive Violet--14 31221014 14. Brilliant violet 5RX Reactive Violet--2 31221015 15. Magenta B 31221016 16. Yellow MY-R Reactive Yellow-- 31221017 17. Yellow 4-AS Reactive Yellow--3 31221018 18. Yellow HY-R Reactive Yellow--4 31221019 19. Yellow M-GR Reactive Yellow--7 31221020 20. Yellow H-4G Reactive Yellow--18 31221021 21. Brilliant yellow M-4G Reactive Yellow-22 31221022 22. Brilliant yellnw 6G Reactive Yellow--43 3.221023 23. Yellow R Reactive Yellow--44 31221024 24. Black H-N Reactive Black--8 31221025 25. Brilliant blue H-7G Reactive Blue--3 31221026 26. Brilliant blue M-R Reactive Blue--4 31221027 27. Brilliant blue H-GR Reactive Blue--5 31221028 28. Navy blue M-3R Reactive Blue--9 31221029 29. Brilliant blue B-5G Reactive Blue--25 31221030 30. Navy blue 8-3R Reactive Blue--28 31221031 - 31. Navy blue RX Reactive Blue--39 3122102 32. Blue BRR Reactive Blue--56 31221033 33. Navy blue RX Reactive Blue--59 31221034 34. Orange HK-G Reactive Orange--I 31221035 35. Brilliant orange M-2R Reactive Orange--4 31221036 36. Golden yellow H-R Reactive Orange--12 31221037 37. Brilliant orange H-2R Reactive Orange--13 31221038 38. Orange Reactive Orange--14 31221039 39. Orange GEX Reactive Orange--36 31221040 40. Brilliant orange RX Reactive Orange--37 31221041 41. Brilliant orange 3RX Reactive Orange--38 31221042 42. Brown 4-RH Reactive Brown--9 31221043 43. Brown M4-R Reactive Brown--10 31221044 44. Yellow H-AS Reactive YAllow--46 31221045 45. Navy blue 3RH Reactive Blue--26 PAST COLOUR BASES 3122110. 1. Fast Yellow GG base 3700 (Azoic Diazo Camp 44) 31221102 2. Fast Orange GC base 37005 (Azoic Diazo Comp 2) 86 31221103 3. Fast scarlet GG/GCS Base 37010 (Azoic Diazo Comp 3) 31221104 4. Azoic Diazo Comp 7 37030 31221105 5. Fast red 3 GL base 37040 (Azoic Diazo Comp 9) 31221106 6. Fast red TR base 37085 (Azoic Diazo Comp 11) 31221107 7. Fast red KB base 37090 (Azoic Diazo Comp 32) 31221108 8. Fast scarlet G base 37105 (Azoic Diazo Comp 12) 31221109 9. Past red GL base 37110 (Azoic Diazo Comp 8) 31221110 10. Past red R/RC base 37120 (Azoic Diazo Comp 10) 31221111 11. Past red B base 37125 (Azoic Diazo Comp 5) 31221112 12. Fast scarlet R/RC base 37130 (Azoic Diazo Comp 13) 31221113 13. Fast Violet B base 37165 (Azoic Diazo Comp 41) 31221114 14. Fast blue BB base 37175 (Azoic Diazo Comp 20) 31221115 15. Fast garmet DOC base 37219 (Azoic Diazo Comp 4) 31221116 16. Fast blue B base 37235 (Azoic Diezo Comp 48) **NATURAL ESSENTIAL OILS 315102 Cashew shell oil 315104 Sandal wood oil 315105 Pine-oil--Except for composite schemes 315107 Eucalyptus oil 315110 Lemon grass oil 315112 Palm rosa oil 315198 Other natural essential oils **RGANIC CHEICALS, DRU AND DRUG INTERM ATES 31060101 Pare-amino phenol--Indl.grade 310605 Ball & cubes made of para dichlorobenene 310627 Dimethyl sulphate--based on methyl alcohol 310268 Pyra zolones 31062901 Potassium citrate--Indl.grade 310630 Other citrates 310631 Tartrates 310645 Diethyl phthalate 310646 Dioctyl phthalate 310647 Dibutyl phthalate 310648 Dimethyl phthalate 310649 Benzyl chloride PT for captive Consumption 310650 Benzyl benzoate 310658 Niacinamido, 310669 Stearate of Aluminium 310670 Stearate of magnesium 310671 Sterate of calcium 310672 Stearate of zinc 310673 Methyl & Salicylate (Based on purchased salicylic acid) 312127 Paint driers--Napthenates octoates linoleates, etc. of lead, cobalt, manganese, zinc, calcium etc. 312405 Chlorinated paraffin wax (upto 60Z Chlorine content) 313125 Paracetamol 313131 Glyero phosphates 313149 Glycerol phosphoric acid 313150 Lanolin anhydrous 313151 Xanthates 313152 Dichlorophonol 31315801 Methyl parabens and sodium salt starting from pars hydroxy benzoic acid. 31315901 Ethyl parabens and sodium salt starting from pare hydroxy benzoic acid. 31319501 Propyl parabens and sodium slat starting from pars hydroxy benzoic acid. 31319600 Calcium gluconate 87 316101 Turpentine 316103 Resin 316201 Polyester resins unsaturated 316204 PVC compounds 316206 Alkyd resins 1942960 Nicotine acid **OTHER CHEMICALS & CEMCAL PRODUCTS 305301 Wax candles 305901 Napthalene balls 310109 Potassium meta bi-sulphate 310111 Barium carbonate 310112 Barium sulphate 310113 Barium suphide 310115 Sodium sulphide except as by-product 310121 Sodium thio sulphate 31012301 Calcium chlorode-Indl. grade except as a by-product 3102401 Zinc Oxide-Ind. grade 310126 Aluminium hydroxide Sel 310039 Zinc nitrate 310301 Nickel sulphate - Other than manufactured by a primary producer as a by-product. 5.0302 Nickel chloride 310304 Nickel carbonate 310305 Nickel formate 310306 Copper sulphate - Other than manufactured by a primary producer as a by-product 310307 Copper nitrate 310308 Copper chloride 310322 Cadmium oxide 310323 Cadmium iodide 310325 Cadmium nitrate 310329 Cadmium phosphate 310330 Barium chloride 310331 Barium nitrate 310334 - Calcium nitrate except as by-product 310336 Zinc chloride 310337 Zinc sulphate - other than manufactured by a primary metal producer as a by-product 310360 Copper oxy-chloride 310361 Copper carbonate 310362 Potassium iodide 310363 Sodium iodide 310364 Precipitated silica except fumed silica 310365 Sulphur powder - other than insoluble for rubber vulcanisation 310409 Sodium thiocynate 310412 Magnesium sulphate 310424 Electroplating salts - compounded 310426 Zinc cyanide 312017 Artists colours - oil water and wax based 312122 Read lead paints 312123 Red oxide paints 312124 Wagon black paints 312125 Graphite paints 312126 Pazti paints 312402 Shoe polish 312403 Wood polish/french polish 312404 Metal polish 312408 Aluminium paints 312109 Bitumen based paints 312406 Floor pe,ishes 312901 Dr Distempers 313134 Halogenated bydroxy-quinolines starting from 8-Hydroxy quinolines except for integrated schemes for the manufacture of 8-Hydroxy Quinolines 314201 Laundry soap 314303 Formulated perfumery compounds 314401 Tooth paste 314402 Tooth powder 314601 Hair oils 317001 Safety matches 318401 Fire works 319103 Blue print papers--All types 31930301 Husked & dehusked guargaum splits & meals 88 319501 Animal glue 319504 Office Sum paste 319602 Saccharine 31902 Agarbatties 319904 Sodium solicate 319701 Sealing wax 319906 Industrial, adhesives based on starch, gum, dextrin and silicates 319907 Camphor tablets 319908 Alums including aluminium sulphate--ind. grade excluding manufactured in integrated sulphuric acid plants 319921 Potassium silicate 319922 Calcium silicate 319923 Synthetic adhesives--rubber latex PF OF and PVA based GLASS AND CERAMICS 320101 Fire clay, bricks & blocks containing less than 40Z alumina RO0FING TILES 279936 1. Roofing tiles--wooden 320401 2. Roofing tiles--clay 321901 3. Roofing tiles--glass 326113 4. Roofing tiles granite (excluding tiles of thickness less than 10 mm) 329202 5. Roofing tiles--marble (excluding tUles of thickness less than 10 mm) 329202 6. Roofing tilea--ciement concrete FIOORING TILES 279937 1. Flooring tiles--wooden 320402 2. Flooring tiles--clay 326316 3. Flooring tiles--marble (excluding tiles of thickness less than 10 mm) 326137 4. Flooring tilab--granite (excluding tiles of thickness less than 10 mm) 328903 5. Flooring tiles---qement mosaic 329204 6. Flooring tiles--cement concrete CERAMIC TABLE WARES AND ALLIED ITES IN STONE WARES SEN VITRECUS WARES AND EARTHEN WARES NAMELY. 323101 1. Dinner sets 323102 2. Tea sets 323103 3. Cups and sauces 323104 5. Jars and other containers 321002 Block Glass 321003 Vitrite Glass (except for captive use) 32110601 Glass beads except industrial beads 321201 Simple glass mirrors excluding specialised glass mirrors such as those meant for optical instruments etc. 321408 Scientific laboratory glass-ware (excluding burro-Silicate type) 321409 Micro-cover glasses and slides for micro-scopes 321701 Glass bangles 321908 Glass hollowware by mouth blown and/or semi-automatic process 32190901 Sodalame silica preased glass tumbler 32190902 1. Sodalame silica pressed glats plates 321"0903 2. Sodalame silica pressed gla"s bowls 32190904 3. Sodalene silica pressed glass ashtrays 32190905 4. Sodalame silica pressed glass vases 321910 Glass marbles (All types) 323301 Low tension insulators Chemical porcelain, items as follows 32380401 1. Flat tipped basins 32390402 2. Round and rectangular type dishes 32390403 3. Combustion pots 32390404 4. Crucibles 32390405 5. Fitter funnIes for vacuum pressure 32390406 6. Gravity filtrations 32390407 7. Pipette rests 32390408 8. Spotting plates 32390409 9. Desiccator plates 324201 Lime (Other than captive consumption) 324204 Hydrated lime (other than captive consumption) 324901 Plaster of paris (excepting for use as construction material) 89 324903 Chalk crayons including tailors chalk 32490501 Plaster boards (excepting for using automatic process) 326906 Stoneware jars and bowls kundi 326903 Salt glazed sever pipes 32890101 Asbestos pipes & fittings--for households purposes only according to ISI specification 32890501 Reinforced cement concrete pipes up to 100 cma dia 32960101 Graphite crucibles--up to 500 nos. 32990801 Silicon carbide crucibles up to 100 nos. **MCHNICAL ENGINEERIG ECLUDING TRANSORT EQUIENT: 331101 Manhole covers--C.I. 331118 Weights 331141 Circlips 331149 Bright bars 33115101 Pressure die casting--up to 0.75 k.g. 331152 M.S. and C.I. flanges 331301 Conduit pipes metallic 33130401 Flexible metallic pipe up to 35 mm. dia for non-pressure applications 331503 Stranded wire (excluding high tensil prestressed concrete wires) 33160101 Bench vices (all types) 33172201 Mechanical Jacks up to 30 tonnes 33172301 Hydraulic jacks up to 30 tonnes capacity 331727 Signal ladders 331751 Steel light fittings 340101 Steel almirah 340102 Steel vaults, safes and cash boxes excluding the following items of which detailed pecifications are given below: (i) Fire Resistant Record production Equipment--Test for two hours up to 10000-C against the time temperature graph specified by the International standard Organisation in their specification No.ISOR-834. The test is inclusive of the drop test midway hrough the fire test. The Cabinet to be tested and certified by the Central Building Reseerch Institute, Roorkee or similar approved testing organisation. (ii) For and BurglAr Resistance Safe which can withstand 'Expert Test Attack'. 'Expert Test Attack' is defined hereunder as per recognised testing procedure. (a) The testing party shall consist of two experienced operators who have studied the sample safe and are fully familiar with its detailed construction and operation. They will also have fully studied detailed component and assembly drawing of the safe. (b) The tools available shall be all ccmmcn hand tools including sledge hammers up to 3.5 kg size and crow bars up to 1-1/2 meters long. Power tbols will include portable electric impact hammers up to 25 mm size portable drill presses or drill holding mechanism to accommodate portable electric drill up to 12 mm. in size; carbide tipped drills will be used (and not just plain HSS drills). Also power saws up to 200 mm in diameter and hole saws up to 62.5 mm in. (c) 7he objective will be of either making a hole of minimum 40 sq. cm. or knocking off the lock and wedding open the door. (d) The total above test attack will last for a specific time. Civ) Jewellers Safe which can withstand 'Expert Test Attack' 'Expert Test Attack' is defined hereunder as per recognised testing procedure. This will be as per the Fire and Burglar Resistant Safe described above, but with the following vital additions : (a) Oxy-Acetylene gas outting torch will be allowed for attack. The quantity of gas consumed shall be limited to 30 cu. m. of combined total oxygen and fuel gas. (b) One combination Lock is mandatory on these safes. The lock should be manipulation proof and be capable of one million different combinations. (c) There shall be provision for fitting a 2 movement time lock. 90 (d) The safe will have several automatic relocking devices activated by components breaking, explosives, very high temperature and severe shock to automatically relock the safe. Also in case any lock is dislodged by means of explosives or other means, the safe will automatically re-lock. (e) The objective of the attack will be to make a hole of 13 sq. cm. (f) The attack is required to last for twice as long as for the Fire and Burglar Resisting Safes. (v) Safe Deposit Locker The locker doors will have milled edges to permit close seating, thus ensuring not only great resistance to crow bar attack but also interchangeability with each other. This is vital from the servicing point of view. The locks will be interchangeable between themselves which is again absolutely vital for servicing purposes. Each lock is jointly controlled by the renter with a renter's key; and by the custodian who has one master key for the entire installation which may be several hundreds of lockers. The lock lever combinations shall be computer generated to ensure that no two keys are identical and that is own key alone will open lock. The loss of keys by the renters is a coamon feature and a system of breaking open (no duplicate keys or records are kept), urgently repairing the door and refitting with a new interchangeable lock, are vital serving matters. Also occasionally there is a*loss of the custodians key putting hundred of lockers in jeopardy. In this case a mechanic has to be deputed to camp at site, customers are called one by one and lockers openbA in their presence and the custodians part of the lock mechanism changed to suit the new master key. This is a major operation. (vi) Safes with safe Deposit Lockers This can be specified as incorporating all the special features of both a fire and Burlgar Resistant Safe and the safe Deposit Locker as indicated above. This item is used in Banks which do not have their own reinforced vault and also in large hotels as a service to their customers for keeping their valuables. Here the ability for urgent service to hotel guests who may have lost their keys and may have valuables like money, airline tickets and passports, is very vital. One other vital point is that the most popular size is the 2085 mm high unit which weights around 2.5 tonnes and requires an overhead crane during its manufacture. 340103 Meat and food safes--Metallic 340104 Metal cabinets--All types 340201 Steel trunks 34030101 Tin containers unprinted--other than O.T.S. and cans up to 18 liters capacity 340306 G.I. buckets 34030801 Barrels up to 60 litre cap. 34032001 Drums up to 60 litre cap. 340322 Tin trays 340323 G.I. bath tubs 340324 Dust bins 340401 Sanitary fixtures--metallic 340403 Cocks and valves--water pipe fittings 340401 M.S. pipes fittings--up to 100 mm. dia. 341010201 M.S. storage tanks up to 15000 liters storage capacity (simple type with rivets/welds but excluding pressed ribs) 340501 Pressure stove 340502 Wick stoves, Other than those manufactured in accordance with design nos. 145215, 145216, 145299 (Nutan type stoves) registered in the name of IOC 340601 Hurricane lanterns 340605 Singal Lamps 340606 Hand lamps 340902 Shoe tacks 340903 Shoe eyelets 340904 Umbrella ribs and fittings 340906 Zip fasteners--Metallic except in the case of integrated plants manufacturing--all components 340907 Tin cutters 340918 Belt fasteners 340919 Snap fasteners 91 340921 Gun cases 340922 Crown corks (Except for captive consumption) 341001 Doors, windows and ventilators metallic 34104 Rolling shutters 341001 Lantern posts and bodies 342002 Aluminium furniture 34200301 Adjustable beds--Hospital 34200202 Iron and steel cots--All types 342004 Storage cupboards--Iron and steel 342005 Racks--All types including angular Racks--Iron and steel 34200601 Wheel chairs for invalids 34200602 Steel chairs--All types 34200701 Steel tables--Hospitals 34200702 Steel tables--All other types 34200801 Trolleys--Railway Platform drinking water 34200802 Trolleys--Iron and steel--Hospital 342009 Stretchers--Iron and steel 342010 Storage bins--Steel 342099 Steel furniture--All other types 343101 Hacksaw Frames 343102 Pliers 343103 Screw drivers 343104 Spanners 343106 Hanmdrs 343108 Anvils 343109 Wood working saws 343111 Wrenches 343112 Knives and shearing blades (all types including those of metal, paper, bamboo and wood for manual operations) 343113 Nail pullers 343114 Chisels 343115 Pincers 343116 Wire cutters 343199 Other Hand Tools for Blacksmithy, carpentry, handforging, foundry etc. 34320101 Bolts and nuts--Except high tensile and special types 343203 Rivets of all types/including bifurcated 343207 Wire adjusting screws 343301 Tumbler locks 343302 Pad locks 343303 Safe/cabinet locks 343305 Door locks 343306 Lucks--bicycles 343399 Drawer locks and suitcase locks 343402 Chains lashing 343502 Persian wheels 343503 Chaff Cutters 343504 Chaff cutter blades 343505 Animal driven implements 343506 Crow bars 343507 Plough shears/iron ploughs 343508 Cultivators 343509 Disc Harrows 343510 Insecticide dusters--Manual 343511 Insecticide sprayers--Manual 343512 Forks 343514 Hoes 343515 Levellers 343516 Mowers 345207 Stainless steel utensils 343517 Pickers--Metallic 343521 Hand Pumps 343522 Seed Treaters 343527 Hand shovels 343529 Sickles 343531 Seed bins 343532 Water lifters 343537 Kudali 34359901 Other agricultural implements 343601 Wire nails 343602 Panel pins 343603 Wood screws 92 34360401 Machine screws--except socket head and special types 343624 Gate--Books 343625 Shoe nails--animal 343626 Hob nails 343627 Builders hardware 343901 Metallic washers 343903 Barbed wire 344029 Vitreous enamel hollow wares and slates 345101 Spoons--Cutlery 345102 Forks--Cutlery 345103 Table knives/Bousehold knives 345104 Bread cutters 345199 Other cutlery items 345201 Domestic utensils--brass 345202 Domestic utensils*Aluminium 345203 Domestic utensils--Bell/metal 345204 Domestic utensil--Copper 345205 Domestic utensils--Iron 345208 Domestic utensils--Silver 345209 Domestic utensils--Bronze 345210 Domestic utensils--German silver 345406 Gas appliances such as cooking ranges, ovens etc. 345407 Gas-lighters--Mechanical 349201 Rators . 349903 Safety pins 349906 Watch straps--Metallic 34990701 Beam scales 34990702 Postal weighing scales 349909 Expanded metal 34991001 Welded wire mesh--except for expansion of existing units 34991101 Wire 3auge and wire netting metallic corser than 100 mesh size and up to 2 meter width 349914 Steel wool 349940 Hair pins 349941 Metal fittings for leather goods and garments 349942 Ghamelas 349943 Blacksmith hearths 349944 Brass Dampers 349945 Measuring tapes--Steel 349946 Lamp holders 350102 Winnowers--Upto 5 h.p. motive power 350103 Wheat and rice threshers--Upto 5 h.p. rjoti*.e power 350104 Seed cleaners--Upto 5 h.p. motive power 350105 Grain Dries--Upto 5 h.p. motive power 350106 Shell Huske- --Upto 5 h.p. motive power 350107 Reapers--Upto 5 h.p. motive power 350108 Cotton Delimiting machine--Upto 5 h.p. motive power 350109 Seed drills--Upto 5 h.p. motive power 350110 Other agricultural machinery--Upto 5 h.p. motive power 35080101 Harvester grader, baler & other earth moving blades used in agricultural machines 350803 Low speed gear for use in agricultural machines, threshers--Made of cast iron/mild steel--Non-heat treated 35230101 Diesel engines upto 15 h.p.--Slow speed except those with specific fuel consumption less than 180 sm. per b. h.p./per hour 353134 Rice and dal mill machinery 353201 Oil crushers 353202 Oil crusher parts 353804 Cotton ginning knives 353805 Tea cutting knives 354803 Three knives trimmer and envelope cutters 354804 Clicking knives for leather industry 354805 Chopping knives and lancets for match industry 354806 Plastic shredding and granulating, knives 354807 Knives and shearing blades (all types including those for metal, paper, bamboo & wood for b-.&d operated machines) 354808 Doctor LLades 354809 Stainless steel refiner/bar knivea 35490701 Concrete mixers upto 3 cubic meter capacity 354925 Band saw blades--For cutting wooden logs 35520101 Room Cooler--Desert type 355819 Air-conditioning ducting louvers, grills, and other sheet fabrication in air- conditioning 93 35630301 Centrifugal pumps up to size 10 cm X 10 cm. 35650401 Air compressors up to 5 H.P. for spray painting repair shops 356803 Electro formed screens/Liners used in the Chemicals & sugar industries 35711701 Hand Threading tap holders 35720201 12 mm Drilling machine upto 1500 rpm Bench and pedestal type 35720901 Turning, Boring and Treading Addas--small, single or multiple operation devices 35741001 Bench Grinder upto 300 mm diameter 35750201 Power Hacksaw--Mechanical--300 mm Blade, size 35760301 Scred Presses (manually operated) 35760501 Hand presses (manually operated) 357806 Coolant pumps etc. 357807 Steadies 357808 Dog Plates 357809 Machine vices--Machine Tool 35781101 Carbide--Tipped tools--Single point Brazed carbide bits purchas4d from manufactures 358601 Weighing machines/weight bridges--Ordinary 358901 File mechanism 35910101 Sewing machines--Domestic, Hand operated, conventional type 359203 Household knitting machine 359601 Absoiute filters for biological and air conditioning application 35993601 Duplicating machines--Other than those of special type 359940 Bottle washers 359943 Double cane mixer--Dairy Eqpt. 359944 Micro pulveriser--Dairy Eqpt. 359945 Rotary driers--Dairy Eqpt. 359946 * Basket Type centrifuges--Dairy Eqpt. 359947 Milk cooling and ghee settling Rquipment--Dairy Eqpt. 359948 Evaporating pans--Dairy Eqpt. 359949 Butter churn--Dairy Eqpt. 359950 Curd Mills--Dairy Eqpt. 359951 Agitators--Dairy Eqpt. 359952 Storage tanks for dairies 359953 All poultry equipments 36. Electrical machines, appliances & apparatus including electronics Electrical Appliances 36020201 Potential transformers, 11 KV. except for captive consumption 36020301 Current transformers, 11 KV. except for captive consumption 360206 Boosters 360205 Voltage stabilizers--Domestic type 36040201 Electric motor 1 H.P. to 10 H.P.--A.C. except special types 360403 F.H.P. motor--A.C.--Excluding special types 36100101 PVC wires--Domestic type 36100201 V.I.R. wires--Domestic type 363101 Table fans 36310401 Exhaust fans up to 460 mm 36340201 Miniature vacuum bulbs--excluding auto lamps 36340302 Torch bulbs--Other than pre-focused type 363404 Radio panel bulbs 363405 Cycle dynamo bulbs 363406 Decoration bulbs 363170101 Electric irons--Other than steam irons 36370201 Electric staoves up to 3 kv 36370301 Hot plate boiler plate upto 3 Kos./upto 4 kW 36370501 Storage water heaters/Geysers upto 100 liters capacity/upto 3 KW 36370601 Electric kettles--sauce pan/ring types upto 1.70 liters 36370701 Mix/Grinders such as meat mincer, juice extractor cap. of jar 1 litre max/upto 500 watts 30 minutes rating 363708 Hair driers--All types 36371201 Hot cases upto 113.2 liters 36371301 Not air blowers/heat convector upto 2 KW upto fan size 26cm-20cm-6cm 36371401 Room heaters upto 3 KW 36371501 Egg boilers upto 1/2 dozen eggs 36371701 Water boilers upto 100 liters capacity 36371801 Espresso coffee makers upto 1.70 liters capacity 36371901 Coffee percolators upto 1.70 liters 36362101 Immersion water heaters upto 3 KW 36372201 Food warmer trays upto 500 watts 363723 Electric Auto tandoors 94 36372401 Bread toasters ordinary/upto/semi-auto u cap. 6 slices 36372501 Ice-cream makers cap. 1 litre for use with domestic refrigerators 36362601 Domestic washing machine other than programmable type 363727 Baking ovens with/without provision for roasting/grillit.g upto 56.6 litres and 1 KW other than microwave ovens 363801 Electrical light fittings reflectors 363804 Electrical wiring accessories other than switches, plugs and sockets 363911 Electrical light fittings chockes 363914 Electrical light fittings starters 36391501 A.A. Conductors upto and including 19 strands 36391601 A.C.S.R. conductors upto and including 1) strands 36620201 Air break offload isolators/upto 11 KW including Gang operated 367101 Carbon brushes manufactured from carbon block 369802 Black adhesive insulating tape electrical use 369202 Emergency lamps 36?90401 Electric transmission line hardware and accessories other than those manufactured in malleable castings and performed types 36991601 Metal clad switches upto 100 Amps. Electronic Equipments and Cooments 36420101 Radio/car radio--Low cost upto Rs.250 each 364302 TV antennas 364303 TV tuners excluding electronic tuners 364304 . TV games 364701 Pick up cartridges 364802 TV booster amplifiers 364803 Radio and TV coils 364903 Amplifiers for entertainment and public address system 364904 Assembly of loudspeakers 36620301 Invertors & convertors upto 500 volts amperes 36620401 Regulated, D.C. power supplies upto 0.01% regulation 366206 Electronic fan regulators 366207 Dimmers & Twilight switches 366905 Digital clocks 36710101 - Wire-wound resistors other than professional types 367401 L.F. transformers 369601 Telescopic aerials for radio receivers 369954 Battery eliminators Transport equipment boats and truck body buildings 370201 Wooden--Boats body building 374201 Truck body-building--Wooden structure 374202 Seats for buses and trucks Auto parts components and ancillaries and garage eqpt. 374162 Window channels--Auto 374616 Wiring harness 374517 Arms and blades of wind shield wipers 374606 Grease nipples 374708 Gun metal bushes 374714 Bulb horns 374717 Hub caps--Auto 374721 Hose pipes and radiator hoses--Auto 3747"4 Horn buttons 37472601 Shackle pins--Automobile use 37472802 Auto leaf springs 374729 Luggage carrier 374737 Ornamental fittings--Auto 374742 Brake and pedal pads--Auto 37474902 Automobile radiators--Except for expansion of existing units on merits based on new improved technology and excluding aluminium radiators 374752 Radiator grills--Auto 374755 Rear view mirrors--Auto 374759 Seat cushion 374768 Steering wheels--Auto 374778 Sun shades--Auto 374780 Side lamps assembly--Auto 374781 Spot lamp assembly--Auto 374782 Stop lamp assembly--Auto 95 374787 Tail lamp assembly--Auto 37400A Ash trays--car fittings 374811 Battery cables and fittings 374812 Battery cell tester 374869 Electrical fuse boxes--Auto 374870 Electrical fuse-Auto 374874 Exhaust mufflers--Auto other than double coil exhaust mufflers 374883 Fuel tank caps--Auto 374884 Fuel lines--Auto 374901 Armature tester 374902 Battery terminal lifters 374903 Condensors and resistance testers 374904 Fenders, spoons and hammers 374905 Feeler gauges 374906 Flaring tools 374907 Gear flushers 374908 Puller of all types 374909 Ring expanders 374910 Ring compressors 374911 Screw extractors 374912 Spark plug tester & cleaners 374913 Stud removers--extractors 374914 Toe in gauges 374915 Tyre valve pullout tools 374916 Tube cutter 374917 Flanging tools 374918 Valve lifters 374919 Valve replacing & reseting tools 374920 Camber testing equipment 374921 Painting equipments like spray guns etc. 374925 Grease guns 374926 Tyre inflators--Both hand and foot operated 374868 Electric Horns--Auto 374994 Auto rubber components as follows:-- 37499401 1. Brake pedals 37499402 - 2. Clutch pedals 37499403 3. Dust covers 37499404 4. Wiper blade components 37499405 5. Windscreen beedlings 37499406 6. Door channels 37499407 7. Rubber beading 30260701 8. Rubber mats 375804 Spokes and nipples--Auto cycle other than swaged type 389913 Sun visors--Auto Bicycle Parts. tricycles & perambulators 376102 Cycle frames 376801 B.B. Axle 376802 B.B. Cups 376803 B.B. Shells 376804 Bicycle tube valves 376805 Handles bicycles 376807 Bolts & studs and screw--All types--Bicycles 376811 Bells--Bicycles 376812 Carrier--Bicycles 376813 Chains--Cycle 376814 Chain wheels & adjusters--Bicycle 376815 Lamps--Bicycle 376816 Chain covers 376817 Cones--Hub cones--Bicycle 376818 Cotter pins--Cycle 376819 Crank shafts--Cycle 376820 Crank forgings--Cycle 376822 Grown outer cover--Cycle 376823 Cycle dynamos 376824 D-nuts--Cycle 376825 Eye bolt cups--Cycle 376826 Fork blade crown cover--Cycle 376827 Fork handles--Cycle 376828 Frame collars--Cycle 376832 Guide pins--Cycle 96 376836 Handle bar grips 376838 Hub oil clips--Bicycle 376839 Hub axle nuts--Dic,,cle 376840 Lock nuts & rings--Bicycle 376842 Lugs all types--Bicycle 376843 Mudguards--Bicycle 376844 Lamp brackets--Bicycle 376847 Pedal assembly--Cycle 376848 Saddle--Cycle 376850 Shackle rivets--Cycle 376851 Stands--Cycle 376852 Spokes & nipples--Cycle 376858 Hubs and cups--Bicycle 376860 Rims--Cycle (Except for captive consumption) 376899 Other cycle parts and accessories except free wheel 376901 Tricycles 376903 Tricycles--Parts and accessories 376904 Perambulator 376905 Perambulator parts and accessories Miscellaneous transport equipsent 378099 Hand & animal drawn carriage, fittings, tonga parts and wheelrings 378108 Wheel Barrows 378109 . . Animal+drawn vehicles 378401 * and-drawn carts of all types Miscellaneous Mathematical and survey instrumenta 380302 Aliades 380304 Chain line base measuring apparatus 380305 Cross-staff 380306 Compass/prismatic 380307 Dividers 380308 Drawing boards 380309 Dump levels 380310 Drawing instruments--Engg. 380311 Diagonal scales 380312 Engineers level 380313 Engineering scales 380314 French corners 380315 Ghat & reed tracers 380317 Measuring chain 380318 Optical square 380319 Protractors 380320 Plane meters 380321 Plane tables equipment 380322 Ranging rod 380323 Flat rule 380325 Set square 380326 Slide rule 380328 Sextant 380329 Triangular scales 380331 Tee 380332 T-squares 380333 Calipers 380335 Drafting machine for designing and drawing offices 380399 Other drawing mathematical and survey instruments--excluding theodolites Sports goods 261401 All types of sports nets 385101 Shuttle cocks 385104 Hockey sticks 38510501 Protective equipments, for sports like pads gloves, etc.--Soft leather goods 385105 Dump-bells and chest expanders 385107 Cricket and hockey balls 385108 Football, volley ball and basket ball covers Stationery items 319911 Writing inks & fountain pen inks 387101 Ball point pens 387103 Fountain pens 97 387104 Pen nibs 387105 Fountain pens and ball pens components excluding metallic tips 387201 Pencils 387401 Hand stapling machine 387501 Paper pins 387601 Carbon paper 387602 Typewriter ribbon 387901 Hand numbering machines 387903 Pencil sharpeners 387907 Pen holders Clacks & watches 38210101 Clocks, wall clocks, pendulum type both with mech. arvement, transistorised movement except lever type clocks 38210201 Time-pieces--Mechanical winding with alarm conventional 38280201 Watch dials except ornamental high priced dials--Simple dials 38280301 Cast brass watch cases polished and plated Others 265101 Umbrellas 38011401 Sterilisers--stainleas steel & aluminium 380225 Microscope--Student and medical use 380401 Watex meters 380504 Revolution counters mech. 380505 . Liquid level controller--(Excepting electronic type) 38060601 Thermometers--Up to 150oC 381102 Opthalmic lenses from blanks 381031 Photographic enlarger 381401 Projectors including slide and overhead projectors--but excluding profile projectors 343902 Wire brushes 389101 Paint brushes 389102 Hair brushes 389103 Fibre brushes 389104 Tooth brushes 389105 Brushes--Natural bristles 389106 Other brushes 389301 Mechanical toys 389401 Non-mechanical toys 389501 Bone meal (except captive consumption for 100% export) 389502 Crushed bones 389704 Chaffinch, tie-pins, metallic dress buttons buckles 389902 Spectacle hinges 389912 Absorbent cotton 389911 Cigarette lighters ADDENDUM (ISSUED an 30th October 1986) (1) After SL.No. 318A and the entries relating thereto, the following shall be inserted, namely:-- "318B 319603 Sodium Saccharine." (2) The following SI.Nos. and the entries relating thereto shall be omitted, namely:-- (i) "St.No.88 290602 Lining Leather from Goat and Sheep Skins."; (ii) "Si.No.89 29090201 Laminated Leather Belting"; (iii)"S1.No.498 349945 Measuring Tapes--Steel"; (iv) "S1.No.513D 354804 Clicking knives for Leather Industry"; (v) "SI.No.611 366905 Digital Clocks (vi) "Sl.No.782 38210201 Time Pieces--Mechanical winding with Alarm Conventional"; (vii)"SI.No.803 389401 Non-mechanical Toys". (3) Against St.No.9, for the entries in the second and third columns, the following shall, respectively, be substituted, namely:-- "20920101 Confectionery excluding chocolates, toffees and Chewing Gums." (4) Against SI.No.15, for the entries in the second and third columns, the following shall, respectively, be substituted, namely:-- "21620101 Poultry Food except in pellet form". 98 (5) Against S.No.16, for the entries in the second and third columns, the following shall, respectively, be substituted, namely:-- "2192101 Ground and Processed Spices other than Spice Oil and Oleo Resin Spices." (6) Against SL.No. 156 B. for the entries in the second and third columns, the following shall, respectively, be substituted, namely:-- "30700101 Coke Briquettes used as domestic fuel"; (7) Against Sl.No.156C for the entries in the second and third columns, the following shall, respectively, be substitutod, namely:-- "30700201 Coal Briquettes (except lignite) used as domestic fuel". (8) Against Sl.No.596, for the entries in the second and third columns, the following shall, respectively, be substituted, namely:-- "36990401 Electric Transmission Line Hardware and Accessories other than those manufactured in malleable castings, preformed type and for lines of 400 kV and above only (subject to its being manufactured in an integrated plant)." ADDENDUM (upto 30-6-1988) Subsequent to the issue of lit of items reserved for excluslve development in the small scale sector showing the position as on 31-10-86' for the following changes have been made in the list by inclusion of three Notifigations dated 13-2-87, 20-7-87 and 18-3-88. The number of items reserved on 30-6-1988, stands at 846. A. ITEMS DELETED S.No. Product Item (as per the Code No. Gazette Noti- fication) (1) - (2) (3) 557 363101 Table Fans 601 364304 T.V. Games 6018 364701 Pick up Cartridges 603 364803 Radio and T.V. Coils 605 364904 Assembly of Loudspeakers 607 3662031 Invertors and Convertors upto 500 Volts ':aperes 608 36620401 Regulated DC power Supplies upto 0.01% Regulation 612 36710101 Wire-wound resistors other than professional types 613 367401 I.F. Transformers 623 374162 Window Channels--Auto 625 374617 Arms and blaaes of wind shield wipers 639 374755 Rear view Mirrors--Auto 655 374884 Fuel Lines--Auto 680 374868 Electric Horns--Auto 693 376813 Chains--Cycle 702 376823 Cycle Dynamos 794 381401 Projectors includ-ng slide and overhead projectors but excluding profile projectors 99 3. CHAMZ OF WICLATURE SI.No. Product Present Changed New (As per Code No. Nomenclature Nomenclature Product Gazette Code Notifi- No. cation) 1 2 3 4 5 32A 260309 Synthetic L".tt- Synthetic knitted 26030901 (5) ed Fabrics except Fabrics except high high pile fabric pile fabric made by made by silver silver knitting and knitting and synthetic Knitt- ed blankets. 125 310651 Rubber blowing Rubber blowing 31065101 agents-hexamine agents-DNPT based. 284 310364 Precipitated Precipitated silica 31036401 silica except uxcept fumed s.ilica fumed silcia and spray dried si.lica 323 319908 Alums including Alums including 31990802 aluminium sulphate- aluminium sulphate- indl. grade ex- industrial grote cluding manufac- excluding its manu- tured in integrated facture integrated sulphuric acid sulphuric acid plants plants. and also recovery from waste toxic effluents. 339A 324201 Lime (other than Lime used for 324201 captive consump- construction and tion) lime wash. 349 32990601 Silicon Carbide Silicon Carbide 32990801 Cruciblsa upto Crucibles upto 100 Nos. 150 Nos. 392A 340922 Crown Corks (except Crown Cork with 34092201 for captive con- Cork wood lining sumption) (except for captive consumption) 624 374616 Wiring harness Wiring harness ex- 37461601 cepting integrated wiring harness. 643 374780 Side Lamp Side Lamp ) Assembly- Assembly- ) Auto Auto } ExoLud- 37478001 644 374781 Spot Lamp Spot Lam ) ing Assembly- Assembly- ) Combi- 37478101 Auto Auto ) nation 645 374782 Stop Lamp Stop Lamp ) Lamp 37478201 Assembly-Auto Assembly- ) Assem- Auto } bly. 646 374783 Tail Lamp Tal Lamp } 37478701 Assembly-Auto Assembly- } Auto } 777 387602 Typewriter Typewriter ribbon ribbon for mechanical typewriters 100 CORRIGENUN Sl.No.(as Product Code Number Items to be read as per Gazette Notification) 147 30391201 PVC pipes including Conduits upto 110 m dia. 326 319923 Synthetic adhesive--Rubber Latex, PF, UF, and PVA based 633 37472802 Auto Leaf Spriag--excluding tapered leaf spring 684 376102 Cycle Frames--except for captive consumption. 101 APPENDIX A3 FLO CHART: SNOWING PROCEDURAL FORMALITIES IN THE ESTABLISHNENT OF SSI 1! THE STATE OF KARNATAKA Decision to start a Company O Req. Cospany Registration Certificate of incorporation: Req. 1. Fore 1A for acceptability of proposed Co. name Reg., 1. Filing of prospectus/statement to obtain 2. Nesorundus & articles of Assot. (W3). Certificate of Cosacetent of Rusiness. S. A ropy Af Agreement if any. eferred in the SNot req. in case of Pvt. Ltd. Co.) Articles of Assoc. 4. Aqreetent of appointment of haiaqing Director/ ghole-tile Director. 5. A Power of Attorney signed by all subscribers. 6. Collect Certification of Incorporation. 7. Copy of letter issued by Registrar of Co's rearding acceptability of naie. 8. Fore No.14: Re. coopliance of various provisions of iaforeation. 9. Fore No.18: locations of Reld. office. 10. Fors 6e.29: Director's cossent (is case of Pub.Co.i I. Fore No.32: Appointelt of Directors (2). 12. Copy of approval/stactios (if any). 13. A filing fee. 14. Approval of Ril and FERA in case of contribution from NRI. l Decision to start a Proprietory Cocere Req. * No specific document to be prepared. Decision to start a Partnership p Partnership Fire Registration Req. - Preparation of Partnership Deed Req. Authenticated copy of Partnership Deed. 102 APPENDIX A3 Can be prepared thru Pvt. Consultancy Services Re: Preparation of Project Profile!Report Cam be prepared by himself L Can be prepared thre Qovt. assistance: (a) Assistante avail free IECSQ1/SISIs (b) To wail subsidy IFCI schese for Prep. of Project Report 1e. 1. Sebeissico of application fore (z]). (To avail subsidy under IFCI scheae for prep. of Project Report). 2. Registration Fore. 3. IFCI clais letter. 4. Proforea Affidavit (e.g. IECSOK) for preparatory concern. S. Partnership/Company Certificate. 6. For speedily prep. of Project Report should provide bio-data of promoter ad details of location/presises/eachinery/ 4uotstionslearketioq/arramgestets, etc. 103 APPENDIX A3 - To be acquired: Consult IIADB/Land Owners Req. 1. Duly filled application fore (02). 2. Details of the constitution of the Co. (02). PRC (s). 3. A brief Project Report (2). 4. A plan indicatino utilization of land (:2). 5. Earnest soney deposit of Ns.500/- Per acre or any par thereof, subject to a aieus of Rs.10.000/- (:2). 6. ULC: Have to file Ln application to the Housing a, Urban Developient Dept. through IIADB (2). e Provisiolal Registratioe Cert. from lept. of I&C- Obtain Land- Own All in one set 1. *rescribed applicatio fore. 2. Project profile 3. Partnership Deed; Neseriade & Articles of Assoc. of the Co. LTo be acquired: Agricultural Land: - Obtain persission for industrial usage thru Tabasi Idar NIC - Obtain OLC if applicable Reg. 1. Duly-filled application fore (x3). 2. Copy of origital atha Certificate (ILIAR) (W3). 3. Is case acquired land is disputed to that effect form Dpty. Coa. Land tribuial. 4. If land purchased from others - enclose copy of Purchase Deed. 5. Sketch of lad location and villages surrouading it (03). 6. lomadary sap of lit- indicating connectia roads with their dimensions (s3). 7. Copy of the Pahasi Certificate. 8. Provisional Reqistration Certificate. 9. Affidavit indicating total extent of agricultural land owned by the applicant. 10. Conversion fine as indicated and Rs.35/- measurement fee. 104 APPENDIX A3 To be acouired: Consult k.osq/Sked Owaer Res. 1. Provisioaal/Perement SI Registration Certificate. 2. Detailed Project Report. 3. Application is respect of sheds in the Industrial Estates not covere( by liaqalore Aqqloseration area; application is respect of shpds im the Industrial Estates covered eder hlaalore Aq9loseration area. 4. Certified copies of Zdacational qualification iscl. and is Support of beiM SC/ST/Ei-Servicean. - . Obtain Shed- On G Obtain NOC fre Pollution Control Board - Req. 1. Plans elevations and sections drain to indicated Req. '. Duly filled-in Application form. scales (:3). 2. Copy of Hemorandum I Articles of Assoc. 2. Block plea draw* to suitable scale showia the layout, or Partnership feed wherever applicable. with proposed ivildinq (3). 3. Copy of SS/Letter of PRC. 3. Any other details or particulars req. by the Board (3). 4. Copy of Proiect Report. 5. Land Possessor/acquisition certificates. 6. Copy of as-aqricultural permission for industrial purpose or letter of allot- nest from ISSIDCIAD1. 7. Site Pla showine surrovading area of factory site within a radius of 5 kas with waste water treateet and disposal systems clearly indicated. S. Location of nearest habitual areo froe the factory with a plan. 9. Layout pla showing the location of afeing equipments, water supply drainaqe lines. position of chimneys, effluent treatment plant and final discharoe points. sludge solid waste disposal points. 10. Cost of proposed Poietion Control Heasures (water & air). ."...g.To be Rented: Enter into Lease Agreeaent 105 APPENDIX A3 m-- .P Obtain lilding Plan Approval from Local Authority I Obtain Trade License fro Local Authority lospectorate of Factories if applicable Req. (lla) Registration under the Factories A.t where applicable. 1. DIly filled application fore. (1) For obtaiiing permission to construct, eitend or take into 2. Copy of the latest ta paid receipt. use any building as a factorys ' 3. Copy of building sanction plan of the proposed place of trade (2). Req. 1. Fore N6.1 Application fore (3). 4. Owner's coasent 2. Possession Certificate for land/shed. 5. Neighbor's consent and locality Hahazar. 3. Plans drain to scale, showing site & imeed. surroundings 6. Imforation on Sanitary Arrangements of building. and plan elevation nec. cross-sections I details of 7. copy of latha eltract. building (:3). 4. Stability Certificate from Chartered Civil Engineering in case of old building. 5. A flow chart of the sfqing. process supplemented by a brief description of the process in its various stages. (2) For obtaiaisq license to occupy bailding: Req. 1. Fore No.2: Application (W). 2. A copy of Partership Deed/Wesorandve I Articles of Assoc. 3. A flow chart of oft. process. 4. In case of hazardous chemicals, safety measures re. use of chemicals is to be furnished. (3) For obtaining liceuse to erect, re-erect or to make alteratioms in any place la a baildins: Req. 1. Illy filled application fore. 2. License Fee Challia. 3. Site plan, showing the eistiml trees, well and block levels to be furnished in cases where baseient/cellar floors are proposed below ground level (4). 4. Latest tai paid receipt. 5. Latest latha Certificate. 6. Previous snctioned pla. 7. Affidavit and ladeanity loud under farn. Urbam Land (ceiling I regulatioa) Act, 1976. 8. Foundation Certificate in respect of old buildioqs for vhich sew floors are proposed to be added. a) Ne objection certificate in case of building proposal abuttine to oeighborimg properties. b) No objection certificate fre agencies like IDA, IED, I1SSI, VC1, Authorities, District Naqistrate, UAC, Inspector of Factories, Controller of Ebplosives, Railways, Fire Force Dept. and any other authority wherever applicable. 9. Building Pla (4;. 10. Schedule 11 of National luildin Organitation (RI0) (2). I. Developmeat Charge receipt. 12. Any other information. Following completion of item (3): - Submit 'Notice of Coseacement ol work' in the said format. - Submit 'Notice to Authority on Completion of Foundation' before erection. * Application for '6rant of Occupation Certificate'. 106 APPENDIX A3 Paver 1. Duly filled application fore. 2. Licemse/persithOC fro$ the local body andtor such authorities as say be req. (not req. ohen power supply is for industry located is as IADl/ISSIC Industrial Estatel. later Re4. 1. Dhly filled ipplicatios fore incl. seter cost I deposit. 2. Isforeatios on mater requireoent (quantity) aid purpose of fse. 3. A copy of the Ileeprint of the suctioned plan fro the local aithority (3). 4. A copy of the Faitary lork Order. S. A copy of the latest ta paid receipt. 6. Road catting emderseeent from the local authority. . The Ieneral power of attorney in case of athorined signatory. Ire Purchase: NSICa -lt I lachimery L leports* Obtain AUCC Escise leistration Req. !. Duly filled application for@ (:3). 2. Factory layot plao (grouNd pla). 3. List of eachinery. 4. Layot of machinery in factory. 5. IST I CST reqistration uokers. 6. List of Directors and their addresses. 7. Project report. 8. leserodides I Articles of Assoc. rlorkinq Capital: Commercial Bankd . Lonq Term Loses: ISFC* ..edrrage- 1lS & WS legistraties 1. Duly applicatio form. 2. Copy of Partnership Deed or Hese I Articles of Assoc. as applicable. For IST: 1. A photograp. 2. Details of estimated terlover. 3. Registration fee of Rs.250/-. For CST: 1. As.25/- court fee stamp. 2. Details of proposed inter-State purchase. hildiel testrectiu if set. hScarce: Obtain quota allocation litteffal Imports -.obtain AUCC Oter lelistratin if applicable l1spover Teleghne if sec. Req. 1. Dely filled application form. a,b,,.,e fotnots shown at 2. copy of Reqistered Partnership Deed (aloq with s ettract the end of this Appendix of Reqistration in form 54) or a copy of the Heso & Articles of Assoc. (as applicable). 3. Copy of PR. 4. An affidavit. 107 APPENDIX A3 Obtaia Final Consent . ...........e.Coaissionies of Plat Trial Run --oComiercial Production - &4.Registration of Factory with laspectorate of Factories if applicable .108 APPENDIX A3 Permanent Registration fro# Dept. of 1IC Req. 1. Dly filled application fore (4). 2. Documents in proof of the constitution: (a) Partnership Deed in cabse of partnership. (M) Remo i Articles of Assoc. in case of Pvt. Ltd. Co. and along with the certificate of incorporation in the case of Public Ltd. Co. (c) Certificates of Registration issued by the coopetest authority in the case of Registered Trusts and Co-op. Societies. 3. Orilinal PRC, if already issued by the Department. 4. locuests for possession of land and btilding: 5. (a) If the unit is is owa buildimg - Katha extract and local tat paid receipt, or (hM Lease Deed, if the umit is located in a lease bldg. or (cl Possession Certificate, if the vait is located in XSSIOCIADI land or shed. 6. Copy of the Licence obtained from the Re.."cipal Corporation/Town Nunicipality/ Nandal PacEAyt. 7. Power service certificates (power coonectioe) issued by larnataka Electricity learl Authorities - the power should be is the same of the unit or imy of the Partser/Proprietor/buildiog owier. 8. List of plait and machinery with origioal value (4). 9. Copies of the IST & CST Certificate (in the case of units wholly working oi job wc'rk basis, the copies of KST & CST certificates say not be necessary). 10. Capi2s of the P.P. approval in respect of electroics units (12). II. letails or production turnover and sales tax paid from the date of cossenceeent - of prOdmctioN. 12. First sale invoice. 13. Copies of the clearance obtained from the Pollution Coitrol loard wherever secessary. 14. Copy of Powerlooo permit issued by the State Testile Authority in respect of Powerlooo gait. 15. Copies of the approval from the competent authority in respect of Food, Rubber, Drus, Alcohol based and forest based aid other industries wherever necessary (is case of Electronic Industries all enclosures :2). Obtain ISI certification if sec./applicable 1. lly filled application fore (:3). 2. Attested copy/photocopy of the Certificate of Icorporatioa issued by the iceistrar of fires or Societies/firector of ladestries or similar docusents asthesticating the nase of the fire and its easufacturing presises. 3. A statement indicating sachines, tools etc., installed in the unit. 4. A statemet indicating testicg arrangements already sade as per IS for testing of the products/process. 5. List of testing arrangements as per IS proposed to be made. 6. Details of technical personel employed - their qualification and job. 109 APPENDIX A3 FUTNIES feg. 1. Soly filled applicatio fore (s3). 13. Efforts sde toards indiqenovs angle. 2. The requisite application. (Note: The unit say approach the itthorities 3. Attested copy of SSI 110istratioe Certificate eith for isoortatioa of machiery after obtaining with the Director of ladstries. Power Sanction order from 15El1. 4. (s) Attested copy of the Partmership Deed/Certificate of lacorporatioe I Hes and Articles of Assoc.; ly-laws (c) of Assoc.; ly-las depeding a sature of eeterprise. Req. 1. Duly filled applicatios fore (02). (hM Is case of ltd. Co., a copy of Resolotion of 2. Copy of the PNT/FRC. Directors aid is case of Co-op Society I Trst, a list 3. List of coepopeats/raw eaterials/sW-assetilies to of officer bearers. which AUC is soqbt for, along with the erbo and S. (s) Latest q1otatioe with full specification of the details of the costoss notificatios. . meachines frae the foreiqo suppliersiathorized agests 4. Cosies of ieport license is issved or copies of profor in case of ieported fachises (CF or C.I.F. basis etro invoice if the items are Wer d0L. applicable) aid fre the iaswfactorers or fro S. List of eiistiog plant aid eachinery along with value. their Sole Sellisg Agests for indigenous machiues 6. Tareover, sales tas paid, productiom and power consuep (f.e.b. statios of despatch basis together with for the past year is respect of eiistinq units. illustrated leaflets/catalo4ves draws in the ase . 7. Arraseests side with regard ** Lad aid lsildia,-Tovert of NSIC Ltd. Fisaice aid lachisery aid eluipteat is the case of (h) Beclaratioe wider seal that sepplier prices do proposed waits. set e1teed govt. prices (ad the ausust of discovet 8. If the valve of AUC requested is less thai I lakh ns if Jay). affidavit os a stap paper or Rs.10/-. 6. Approval of Tetile Conissioser, lombay/Jete 9. etail report ow masnfactwriaq process to he submitted Coasissioner, Calcattailrg Cotroller/Food Controller/ ut a year. Silk heard wherever applicable. I. Copy of PPP approval is case of Electroic ldustrits. 7. The states of the Nsed of the Lady Proprietor/ Prtsersfirectors. S. Iscee tat clearance certificate is iodividal capacity (4) is respect of Proprietor/etch Parteerleach Director Req. 1. Illy filled application fore (s2). shoving taies claised and paid. 2. List of machinery lexistiao/proposed) to be acquire as 9. Attested copy of Mlnce sheet/Profit I Loss accoat/ per the specimes gives is the application fore. Incoe eipesditure statemest for the last too financial 3. Copies of latest balance sheet along with the trading ai years is case of existief concern. profit I loss stateent - (ie case of already established 10. Family History shet is respect of Proprietor/acm Units. Partmerleach Director is the eeclosed prescribed proforea 4. Copies of relevant estimates for cosstraction of buildi is case of applicatios for isported machinery or incldinq plan, proforea isvoices for eachiseries etc. indigeous sachinery coeedies Rs.200,000/- by value, case of Tere Lae reqoireests for fired issetsJ. (b) For workiog Capital Loe requireseits of above Rs.500.000/- and Req. 1. DMly filled application fore t7.) heloN 1s.2.500/-: 2. Grigiial Chiliae. 1. Proiect Report 3. Copy of PRCJPNT. 2. Copy of loss and Articles of Assoc. ly-Las/Partgership 4. List of capital goods to he imported along with Justificatios. Deed/Trest Deed. S. Proferee livoice for the capital goods to he isported. 3. Details of income tns assessed aid paid during last 3 years 4. Detailed catalogue of the capital goods proposed to be imported. 4. Land Possessor/acetisitios certificates. 7. Arrqem ts eade for finance. 8. Socoeents for possession of laidibaildiel (for proposed mits te) only) Req. 1. huly filled application fore (14). 9. Power sanction order from Karnataka Electricity leard (for 2. Partnership Deed (is case of partnership coacerns) (WS). proposed suits only). 3. Registration Certificate & Resolutios passed by the Board 10. Names and residential addresses of the Proprietor/Partmers/firectors. to raise loan from ISFC aid authoritatios fro& Directors 11. Chartered Engineers Certificate is respect of second hand machinery. eicuse the docuseats (is case of Co's) (:3). 12. Permits issued by the Teitile Coasissioner is respect of Tettile 4. Provisional Registration Certificate or Letter or lates ledustries. (13). 110 APPENDIX A3 (e) S. Persissio; fro other govt. agencies (oherever it is 20. Lease Agreeent for indestrial skids 3). applicable) (3). 21. Possession Certificate (s3). 6. Affidavit (13). 22. License issued to construct building by local 7. Project Report (as per ISFC forest) (3). anthotirties such s Villaie Paichayats, 8. lIodata, Netmorth Stateselts (s3). Rosicipalities, the Corporation, (11l, PDA 9. Iest Tat or Melth Ta: Clearance Certificate of KI1M or ISSIC) (s0). the Proprietor/Partnertlirectors (iJ). 23. MC from local asthorities to start the 10. In case of Companies incorporated outside the State Industry (:3). of larnataka, they have to shift their Registered office 24. Encumbrance Certificate and original sale to the 501 for ohich necessary certificate from the teed (:3). Registrar of Copasies of larnataka is req. (13). 25. Approved plans by coscVned authorities (3). 11. Form AK issued by the Registrar of Fires (in case 26. Detailed estimates prepared by imthorited of Co's) (:3). Architects/Civil Cootractor (3). 12. Three years audited alace Shets ad Profit oad Loss 27. Sketch of the site offered as security (s3). Accoasts of all the associated concerns of Proprietors/ 20. lacinery quotatioat ad catalogen from rej. Patersiirectors if ant (3). suppliers (13). 13. Special qalificaties and the esperience sertificate of 29. Import License is respect of imported machineries. Proprietor, if any (Wl. 30. Assurance letter or details of marketing anage* 14. Piner sanction letter free E, or not on progress made. leats made (i3). 15. Copy of the letter addressed to te lakers authoriting 31. Photographs of Preoters/firectors (:3). ISPC to obtain information (33). 16. Is case of SCIST applicant, copies of the certificate to that effect (:3). 17. legistered Lease Agreeset for bilding (loans epto Is.2 lis, registered Lease led is net reg) (3). 11. Lease Agrem t for land where cost of building is invelved (:3). 19. Alletet letter if it is a govt. land (t3). I1i or ISSIC) (:3). Abbreviations: 1. TECSOI - Technical Coasultancy Service Oras. of larnataka 2. SISIs - Small Industries Service Institutes 3. I& * Directorate of Industries & Commerce 4. 1101A * aruataka lndestrial Areas Develoset leard 5. K - evelopoent Comsissioner 6. UCL * Urba Land Ceiling 7. NBC * No Objection Certificate 8. IST - Karnataka Sales Tas 9. CST - Central Sales Ta: it. ISFC - Karnataka State Financial Corteration II. AUC Actual User Certificate 12. IS * Indie Standards lnstitute 13. IFCI - Industrial Finance Corporation of India 14. ISSIOC - Karnataka State Small Industries hev. Corps. 111 APPENDIX A4 INDUTRIAL BETENSION BERVICES: TMB ORGANIATIONM. STRUCTURE I. Introduction 1. Presently, in India, a broad spectrum of services are being covered under the definition of Industrial Extension Services (IES) for the SSI. They include advice and/or direct assistance in obtaining: basic infrastructure; plant and equipment; raw material; appropriate technology (including access to prototype development and tooling centers); training (in entrepreneurship and in job skills); quality testing/control; and marketing, both domestic (including participation in Government Purchases Program) and exports (including participation in export turnkey projects). These services are channelled through a vast network of organizations including: the Central Government institutions and their branches; State Government supported extension services; financial institutions; industry/trade associations (including 'self-help' programs); and non-government. organizations (NGOs). Based on, their respective areas of specialization, these facilities are available to all units which fall under the general definition of a SSI that are registered with the District Industries Centers. The following Flow Chart indicates the direction of IES assistance to the SSI in India by the various groups of institutions. Froor zantUeTRIrT_.raEXnTEoN RPuPORT awayICan to Ts ahn.. Sol tin-C _vERNHPRHT 0MATEPA. OPCAN/ATIOIS ACeNCTES FINANCA PRIVATE SECTOR AGENCIES I(INGL. TPADE/ 1INDUrTRY ASSnN.) Annexure 1 (a,b,c) presents detailed organizational charts of IES networks at the Central Government level, the State Government level and at the level of the Financial Institutions (including information on their areas of activities, funding, budgeting, staffing, line of hierarchy, year of inception, their location and the number of branches operating under each organization). 112 II. Present Network: low of Industrial Extension Services to the SSI A. Central government institutions and Itts Branches 2. The Central Government Institutions and their branches continue to form the core of the IES network, providing both direct assistance and indirect assistance (the latter through State level institutions and financial organizations). The Small Industries Development Organization (51IDO), established in 1954 under the Ministry of Industry (MOI), forms the nucleus of the IES network at the Central level. Since its inception, it has continued to act as the apex body for formulating, co-ordinating and monitoring policies and programs for the promotion and development of SSI in India. SIDO provides direct support services to the SSI through its Small Industries Service Institutes (SISIs) wh.ch currently consist of 29 Services Institutes, 31 Branch Institutes and 37 Extension Centers - forming the second largest IES networ., in Indial. Around 13 IES institutions and their branches (including SISIs and Production Centers) fall under the purview of SIDO: 8 of these are registered Societies. The SIDO reports directly to the Department of Small Industry and Agro-industrial Development which is responsible for providing the overall policy framework for the Small Scale Industry in India. The Department, in! turn, is responsible to the MOI. The primary function of the National Small Industries Corporation ((NSIC), also reporting to the Department), is to provide finance2 and marketing assistance3 to the SSIs. It also operates a number of Prototype Development & Training Centers (PDTCs). The organizations falling under the purview of the SIDO are: Orgmanisations Involved in Human Resource Development: - Integrated Training Center (ITC) (directly under SIDO) N ational Institute of Small Industry - Extension Training (NIESIET) (Registered Society) - the National Institute for Entrepreneurship & Small Business Development (NIESBUD) (Registered Society) Organizations Providing IES in Specific Product Areas: - Central Footwear Training Centers (CFTCs) (directly under SIDO) - Electronics Service & Training Center (Registered Society) - Product & Process Development Centers )PPDCs) (Registered Society) Organizations Providing Tool Room Facilities: - Institute of Design of Electrical Measuring Instruments (IDEMI) (Registered Society) - Central Tool & Training Center (CTTCs) (Registered Society) - Central Institute of Hand Tools (Registered Society) - Central Institute of Tool Design (Registered Society) Organisations Providing Testing Facilities: - Rexional Testing Centers (RTCs) (directly under SIDO) 'The District Industries Centers (DICs), at the State level, have the largest network, operating at the District, Block and Sub-divisional levels. 2By way of machinery/equipment on hire purchase and lease basis. 'Including SSI participation in Government Purchases Schemes. 113 B. State Government Supported Extension Services 3. At the State level, over the years, several IES organizations have emerged, however, their focus has been confined to a few specific areas of assistance such as setting-up of industrial estates, provision of raw materials, marketing assistance, and so on, with less stress given to the development of tooling facilities, testing facilities, prototype development, etc. The District Industries Centers (DICs) are the principle IES organizations at the State level, (although we found them to be more regulatory than promotional in nature). The 422 DICs cover 431 out of 436 Districts in India. They are the first contact point for the entrepreneur - providing him with a "single window" facility which theoretically covers all stages of pre/post production, including registration. The DICs report directly to the State Directorate of Industries (DI) under the State Ministry of Industry (SMOI). We also identified 4 types of institutions operating at the State level, which provide specialized IES. These are listed below. Of these, three are registered Corporations and report directly to the SMOI while one reports to the DI. Also functioning at the State level are organizations whose function is to assist entrepreneurs to obtain speedy procedural clearances. These organizatiods usually work through high-powered Committees comprising of members from various State IES institutions. The Committee reports directly to the DI. Examples of such organizations are the Small Industries Development Agency (SIDA) in West Bengal, the Udyog Mitra in Maharashtra, the Industries Extension Bureau in Gujarat, etc. IES Organizations found t3 be common in most States are: Apes Body at the State Level: - District Industries Centers (reporting to DI) Organisations Providing Infrastructural/Raw Material Support: - Industrial Development Corporations (IDCs) (Corporation) - SmaU Scale Industrial Development Corporations (SSIDCs) Organisatzons Providing IES in Specific Product Areas: - Maharashtra Leather Corporation (LIDCOM) (Corporation) Organizations Ifvolved in Human Resource Development: - Center for Entrepreneurship Development (CED) (reporting to DI) Organizations Ensuring Better/Quicker Services: (reporting to DI) C. Involvement of Financial Institutions 4. Six programs/organizations were examined which involve administrative and financial support from the Financial Institutions. They include: Organizations Involved in Entrepreneurship Development: - Institute of Entrepreneurship Development (IEDs) - Entrepreneurship Development Institute of India (EDII) - Science & Technology Entrepreneurship Parks (STEP) Organizations Providing Quality Testing Facilities: - Quality Testing Centers (QTCs) Organizations Providirg Consultancy Services: - Technical Consultancy Organizations (TCOs) Programs for Modernization and Up-gradation: - Up-gradation of Technology Program (UPTECH) 114 With the exception of the UPTECH Program, which is run exclusively by the State Bank of India (SBI), the remaining 5 programs/organizations are co-financ3d by the all-India Financial Institutions with IDBI as the lead agency4. In the case of the IED and EDII programs, the Department of Science and Technology (DST) and the SBI also actively participate. In the case of the STEP Program and the QTCs, while funding is provided by the all-India Financial Institutions, all administrative support and assistance requLred in the daily operation are provided by Industry/Trade Associations. D. ilateraIlaWtilateral. IndustryfTrade Association & NGO Assistance 5. Several bilateral/multilateral agencies also provide IES (consisting of both financial support as well as hands-on services) to the SSI through NGOs and Central/State Government organizations. A few organizations, namely the Small Industry Associations, have emerged of late to provide more direct IES (such as tooling facilities, quality testing facilities, etc.) to the SSI. Some of these programs are supported by the financial institutions as in the case of the STEP Program and the QTCs. Most private Sector/NGO activity is however confined to Entrepreneurship Development Programs (EDPs) * the majority of which, can at best, be described as "Awareness" workshops. Note: Details of the assistance required in establishing a SSI is presented in Annexure 2, along with the names of organizations providing such assistance. Annexure 3 presents details on Government budgetary allocations for IES by way of "Grants & Subsidies" - Plan and Non-Plan Schemes. III. Hisa&rical Development of Extension Services for the Small Scale Industry in ladia by Tre of Services Provided A. Nodal Agencies 6. The Small Industries Development Organization (SIDO) was constituted in 1954 under the Ministry of Industry to act as the nodal agency for formulating, co-ordinating and monitoring policies and programs for the promotion and development of the small scale sector in India. It was also to supplement some of the services which were to be provided by other support organizations already in the pipeline. To channel these services, the Small Industries Services Institutes (SISI) was established as per the recommendations of the Expert Team5 sponsored by the Ford Foundation. At present, the SIDO, through its wide network of SISIs, continues to offer a broad range of services to the SSI. The present structure of the SISIs consist of 27 service institutes, 31 branch institutes and 37 extension centers. While the service/branch institutes target their assistance to SSIs in particular States/regions (ie: "required assistance..... at the door steps"), the extension centers attempt to provide industry-related service to geographically concentrated groups. The workshops attached to the 'Except for the QTCs which are supported exclusively by the IDBI. $In late 1953, on the request of the GOI, the Ford Foundation had sponsored an international study team to inspect and assess the conditions and determinants of SSI growth in India. In 1954. the Expert Team had presented the findings of their study and a set recoamendations to ensure sufficient growth of an efficient modern and technologically progressive SSI. 115 SISIs extend common service facilities as well as impart training to SSI workers. 7. During India's Fifth Five Year Plan, aided by a resurgence in Gandhian philosophy under the new Government, support services to the SSI were extended down to the District level with the establishment of the District Industries Centers (DICs) (under SIDO) in 1978. The DICs were to provide a "single window" service which covered all the stages of pre/post production including registration. They were also to function as State regulatory bodies'. At present, the DICs fall directly under State jurisdiction, reporting to the respective State DIs. They form the core of the State IES network with 422 offices spanning the 431 out of 436 Districts in India7. The DICs continue to maintain an office at SIDO for better co-ordination of activities. However, despite the efforts of these nodal agencies (i.e. the DICs and the SISIs), delays in obtaining clearances from various State departments (eg: in availing water/electricity connections, procuring raw materials, etc.), continued to plague the SSI. To expedite/allevZate some of these bottlenecks, several 'trouble shooting' organizations emerged at the State level: The Udyog Mitra in Maharashtra; the Small Industries Development Agency (SIDA) in West Bengal; the Industrial Extension Bureau in Gujarat;- the Industrial Assistance Group in Haryank; and so on. These organizations were comprised of high-powered committees with representatives from various State development agencies to provide quick disposal of cases within a designated time period. In Maharashtra, the Udyog Mitra has been taken down to the District levels through the Zilla Udyog Mitra (ZUM) Committees. Further State level activities followed in the form of Regional Development Corporations (RDCs) which focused on the promotion of industry, especially SSI, on a regional basis (with emphasis on backward areas developments) through incentive schemes and promotional/support efforts. 8. By the early seventies, the financial institutions were also playing a role in the development of SSI in India. The initial focus was on backward area development. To provide, under a single roof, a fair and inexpensive package of consultancy services (ranging from feasibility studies, preparation of project reports, entrepreneurship training, management consultancy, design engineering/energy conservation studies, technology transfer, etc.) to SSIs located in backward areas, Technical Consultancy Organizations (TCOs) were established by the IDBI. Contrary to its original intent, the first TCO was not set up in a backward area. It was established in Kerala in 1972. To date, 17 TCOs have been established: 6 in the North; 3 in the South; 5 in the East; 2 in the West; and 1 in Central India. Infrastructural.Support Organizations 9. The National Small Industries Corporation (NSIC) was established in 1955. Its primary function was to provide SSI with easy access to credit for the procurement of plant and equipment - since commercial banks were hesitant to take eThe DICs replaced the State Industries Offices (SIOs), which were the principle State level regulatory body. The infrastructure of the SOl's was used to establish the initial DIC network. 'Annual Report, SIDO, 1988-89. Note: As per our recent discussions with the SIDO officials, this number has now gone upto 483. here deemed necessary, by changing the pattern of existing industry/manufacturing process. For example ..... 116 on the credit risk. It was also to extend marketing support to the SSI (eg: encouraging SSI participation in the Government Stores Purchases Program). In the absence of a State level organizations to cater to the myriad needs of the SSI, the NSIC also assumed the role of a general service corporation. However, after 1965, when Industrial Development became a State subject under the Indian Constitution, many of the services once rendered by the NSIC were taken up by the State authorities. The formation of industrial estates was one such activity9. At present this activity is carried out by the respective State Small Industries Corporations among others. While the NSIC attempted to solve some of the economic issues of the SSI, a chain of PDTCs were set up to tackle some of the more technical questions. Through the PDTCs the NSIC attempted to impart training, upgrade skills/technology, develop prototypes and render common service facilities/consultancy services (the latter through the five PDTC sub-centers). 10. Over the years, at the State level, several organizations have emerged to provide the needed infrastructural support to SSI (including industry in general). They include the Small Industries Corporations (SICs), the State Industries Development Corporations (SIDCs), the State Small Industries Development Corporations (SSIDCs), etc.. In Maharashtra, for example,' in 19'61, the Maharashtra Industries Development Corporation (MIDC) was formed to speed up development of industrial estates (to provide support to industry as well as to develop the backward areas). In 1962, the Maharashtra State Small Industries Development Corporation (MSSIDC) was formed, initially to distribute controlled raw materials. Two years later, in 1964 it diversified to promote SSI participations in Government procurement programs. In 1980, it further diversified to assist industry in the area of exports. At present, the MSSIDC also organizes exhibitions, operates State Emporias, etc. Registered as Corporations, these organizations have the indeperdence to take-on some commercial activities. For example, a major part of the MIDC's income arises out of its Water Supply Schemes - supplying water to industry, villages as well as to some urban centers. A major source of income for MSSIDC is from its warehousing services - primarily to Government/Semi-government agencies (such as the SAIL) at commercial rates. The number and function of such organizations vary from State to State. In West Bengal for example, the Small Industries Corporation (WBSIC) combines some of the functions of the MIDC with those of the MSSIDC. OrganizatIons for Human Resource Development 11. By the end of the Second Five Year Plan period (1956-61), it had become evident that provision of finance/machinery and infrastructural support was not a sufficient condition to generate the desired rate of growth in SSI development. Simultaneous development of the human resource was also imperative. As a result, the Small Industry Extension Training Institute (SIET) was established in 1960 under the Ministry of Industry. In 1962, to provide administrative and financial 'The concept of Industrial Estates emerged during the Second Plan period (1956-61) when it became evident that provision of basic infrastructural facilities to the SSI at concesnional rates was necessary towards SSI development. This included the provision of built-up factory space, access to gas/electricity/water connection, etc. The Okhla Industrial Estate was the first estate to be set up by NSIC. Till today it is considered to be one of the better performing estates. 117 autonomy, it was registered as a "Society"10. Its first task was to train trainers, i.e. to train a cadre of extension service workers who could, in turn, promote entrepreneurship among the SSI. In 1984, the SIET was raised to the level of a National Institute and renamed the National Institute of Small Industry Extension Training (NISIET). To provide training to State level IES officers, the Inegrated Training Center was formed and registered as a Society in the late 19601s. Over the years the Center's functions have expanded to include training of small scale entrepreneurs in the area of process & product development. By 1975, the definition of the SSI had changed to include the service sector. To augment its entrepreneurial development programs (EDPs) to reach this now expanded group, the National Institute for Entrepreneurship & Small Business Development (NIESBUD) was formed in 1983 and also registered as a Society. Till today NIESBUD's primary task remains the promotion of EDPs. The SIDO has also been conducting several EDPs through the SISIs' Branch Institutes and Extension/Production Centers, with the objective to up-grade the managerial skills of the small scale entrepreneurs. The EDPs are usually free of cost. 12. Alongside NIESBUD, in 1983, the ali-India Financial Institutions led by the IDBI, established several EDP in*titutions. They include: thb .Entrepreneurship Development Institute , of India (EDII); the Institutes of Entrepreneurship Development (IEDs); the Institutes of Entrepreneurship Development (IEDs); as well as EDPs run by the Technical Consultancy Organizations (TCOs) and the DICs. The EDII, like NISIET, is primarily involved in the development of training materials and in training of trainers/motivators. At present, the majority of the CEDs (run by the TCOs) fall under the respective State jurisdictions. 13. In the early 1980's, focus turned to Science and Technology (S&T) EDPs. In 1982, the National Science & Technology Entrepreneurship Development Board (NSTEDB) was formed under the DST, to look into the issue of unemployed S&T graduates. At present, the DST works with approximately 42 organizatiors in running EDPs for S&T graduates among others. Of special mention are the S&T Entrepreneurship Development Schemes (STEDs), which promote entrepreneurship in the backward areas and the S&T Entrepreneurship Parks (STEPs), both co-financed by the all-India Financial Institutions and DST (the concept of STEP was introduced by the Birla institute of Technology in 197211, however, given the 'To provide a degree of flexibility and independence in the day-to-day operations, several institutions providing ISS were registered as "Societies" under the GOI Societies Act XXI of 1960. This allowed them to by- pass certain government formalities (both in terms of administration and finance), i.e. they could now recruit staff through advertisement, retain funds generated through commercial activities, etc. It was decided that SIDO would financially support these institutions in the initial years, then gradually withdraw support as the institutions became self-sufficient in funds. The Societies are governed by a Board of Directors, comprising of members from the Central Government, the State Government, industrial units, trade/industry associations as well as from the Academia. The DC SSI is the er-officio chairman of each Board of Directors. "In 1972, the Birla Institute of Technology (BIT) in Bihar, in collaboration with the Birla Institute of Scientific Research (BISR) decided to take up areas of relatively high technology to promote self-employment programs for their technical graduates. The major thrust was on development of technical know-how which would lead to import substitution and also create viable technology-oriented small scale industrial units. Impressed by the success of the effort, the State Government of Bihar decided to reinforce the program - extending substantial assistance for the creation and augmentation of infrastructural facilities such as workshops, laboratories, industrial sheds, etc. The Department of Science & Technology (DST), picked up on the BIT-BISR model of techno-entrepreneurship development to attempt duplicate the program. Thus, with the interaction of the 001, the Government of Bihar, IDBI and other Financial Institutions the first "STEP" was established in March 1985. At present, these Parks provide nursery sheds as well as basic infrastructure (water, electricity, etc.) to nascent entrepeneurs to help them start production. Once production starts, the units are given 3 118 economic viability of the Program, it was picked up by the Financial Institutions and DST). Under the STEP, industrial estates were established in the vicinity of technical colleges and academic/research institutions to enable active interaction between industry and academia at the production site (i.e. converting industrial research to practical usage). To date, 7 STEP Programs have been established. They are located in Bihar, Tamil Nadu, Uttar Pradesh, Madhya Pradesh, Karnataka, Punjab and Maharashtra. 14. According to official source estimates, there are approximately 700 training programs (involving the training of trainers/entreprer.eurs) in India. Around 50% of these are run by the District Industries Centers (DICs). Of the remaining 50%, half are conducted by the SISIs, the rest by the financial institutions aL,d the NGOs (with participation by the DST). Out of these 700 programs, 50-52 focus on SSI entrepreneurship development. Product Specific Centers 15. The Central Footwear Taining Center (CFTC) was established in Madras in 1956. The target of the CFT9 was the large local leather industry, which attempted, at the time, to proyide the country with manufactured leather products under planned growth. The aim was to train locally sponsored employees, who would return to train fellow workers in the industry. A similar Center was set- up in Agra in 1960, this time targeted to the country's largest footwear industry. 16. After 26 years, at the beginning of the 7th Plan (1986/87), the first Product-cum-Process Development Center (PPDC) was established in Meerut to service the local sports goods industry. Meerut produced leather-based items with good export demand and high returns on investment (such as golf gloves). The industry was composed entirely of small scale units for whom it was not cost effective to carry out R&D activities on individual basis for items which involved multifarious technology. Almost simultaneously, a PPDC was set-up in Agra in 1987. Still in its formative stages, it focuses its services on the Castings and Forgings industry located at Foundry Nagar along the Agra industrial belt (although certain related industries are serviced as well). Here the industry is comprised of both large/medium and small scale units. The first PPDC was set-up in Ranchi around the early 1970's. Its objective was to cater to the local Glass and Ceramics industry which had come up as a result of the many refractories located in the nearby area (an outcome of the presence of local steel mills such as TISCO, IISCO, Durgapur, etc.). However the Ranchi Center never really took-off (possibly because the expected fundin from the UNDP never materialized). Consequently, unlike the PPDCs at Meerut and Agra, the Ranchi PPDC (though defunct) remains directly under SIDO. In 1986, the Electronics Service & Training Center was established (and registered as a Society) in Kashipur near Ram Nagar in U.P. Its target was the local electronics industry. Initially, 20 sheds were constructed, to promote/disperse electronics manufacturing into the backward, hilly areas. Climatically, Ram Nagar is considered to be ideal for the growth of the electronics industry. years to stabilize operations, then they are expected to vacate the premises to make way for others. Established, local entrepreneurs can avail of the comuon service facilities provided by the Park for a fee. The sponsoring institutions of the Parks are the academic/research institutions. They expect to cover the recurring expenses through development funds. The State Government is expected to provide the land and basic infrastructure. 119 17. At the State level, several product specific IES have emerged (the majority as Corporations). The product areas are selected on the basis of local industry concentration. Examples of such Corporations are: the Ceramic Development Corporation Ltd., West Bengal; the Leather Development Corporation Ltd. West Bengal; the Leather Development Corporation Ltd. (LIDCOM), Maharashtra: etc. These Corporations provide services in the area of product/process development, testing and marketing. The UPTECH program initiated by the State Bank of India (SBI) is also product based. Tool Roma 18. From the Fourth Plan period (1969-74) onwards, the GOI began to establish several tool design centers. The first to emerge was .the Institute of Design for Electrical Measuring Instruments (IDEMI) as a result of the thrust given to the manufacture of indigenous electrical instrumentation in the late 60's/early 70's. The institution was established in Bombay since, at the time, it was the main center for assembling and testing of electrical instrumentation. The object of IDEMI was to train workers and develop inst,rumentation designs. Since then the Institute has diversified considerably to keep pace with current demand. In the following year (1970), the Central Intitute of Tool Design was established in Hyderabad to serve the numerous large scale machine tool and hand tool units located in the area (HMT, Larsen & Toubro, etc.). In the late 70's, in a major attempt to disperse tool rooms among user industries, the Central Tool room & Training Centers (CTTCs) were established. The first CTTC was set-up in Calcutta in 1976-77 to cater to one of India's oldest and largest industrial centers. The region had a heavy concentration of plastic and engineering (press tool) units. The CTTC was to provide training in the design and manufacture of tools, jigs, fixtures and molds. The second CTTC was established in Ludhiana in 1980, again to cater to the heavy local concentration of press tool and plastic units. Four additional CTTCs emerged in the ensuing years (located in Delhi, Bangalore, Lucknow and Jalandhar); all 4 fall under State jurisdictions. Six more CTTCs are in the pipeline. Finally, in 1983, the Central Institute of Hand Tools emerged to service the large export-oriented hand tool industry in Jalandhar. All the institutes were registered as Societies to allow a degree of flexibility and independence in their functioning. Testing Centers 19. The 1980's again saw a spurt in IES growth with the establishment of the first Regional Testing Centers (RTCs) in 1982/83. The objective was to assist small industries to improve their techniques of production and management. At present, 4 RTCs cater to the testing/quality control/upgradation needs of SSI in their respective regions (ie: New Delhi RTC for the North, Calcutta RTC for the East, Bombay RTC for the West, and Madras RTC for the South). The RTCs also provide technical guidance to 18 Field Stations. These Stations, administrative- wise, fall under the respective local SISI offices. The RTCs themselves fall directly under the SIDO. 20. In 1986, the IDBI, established the first Quality Control Center (QTCs) to help industry become self-reliant in the area of quality testing of raw materials, intermediates and final products (both for the domestic as well as for the exports markets). The QTCs were to encourage quality product development as well as to ensure adherence to ISI standards. This was to be achieved by 120 encouraging groups of entrepreneurs to establish common service facilities. The IDBI continues to provide some financial support. To date, 10 Centers have been sanctioned, out of which 4 are functional. These are located in Coimbatore, Cochin, Bangalore and Delhi. One center at Howrah is under implementation. Note: Annexure 4 presents a Summary Sheet of the above IES Institutions by type of function 121 APPENDIX A4 Annexure 1 ASSISTANCE REQUIRED TOWARDS ESTABLISHING A SMALL SCALE UNIT St. Steps Task Assistance required In Organisations No. Providing Assistance 1 2 3 4 5 PRE-INVESTMENT STAGES OF PRODUCTION 1. Selection of Product To ascertain product Access to market surveys CG: SISIs viability/ profitability to gain insight into SG: DICs given the market existing and potential FI: TCOs, STEPs conditions viability market conditions viz. product. "Coi litions" implies both demand info. as welt as input supply info. 2. Other pertinent Info. To ascertain proximity Provision of info. on: CG: SISIs regarding product to consumers as wel as - all locationaL aspects SG: DICs viability, e.g. Location to supply inputs and to * wage rates/ avail. of FI: TCOs of Enterprise basic infrastructure skills - incentives/ concessions avail. etc. 3. Assistance in Which irc. the fotl. comps: Formulation of flow CG: SISIs, DICs, STEP, TCOs preparation of Project Tech. Feasibtility, inct. process chart, quality SG: DICs Report * descrip. of prods. spec. control factors, etc. FI: STEP, TCOs * raw material avail. * outline of mfn. process * infrastructure avail * Economic viability Provision of info. of * product demand competitive supply/ * Installed capacity demand variables, etc. req. viz. K-assets * evat. of K-costs * price & revenue consideration Financial Implications - Est. of fixed & variable * non-recurring/ recurring exp., break-even analysis, cost est (may be over a % of profit on total rev. 5 year period. / expected. sales etc. * Maragement Competence - Quantitative presentation * human resource costs/ of info. req/ avail. 122 Annexure 1 ASSISTANCE REQUIRED TOWARDS ESTABLISHING A SMALL SCALE UNIT St. Steps Task Assistance required in Organisations No. Providing Assistance 1 2 3 4 5 4. Registration (Prov.) Towards entitlement in SG: DICs application for: Reg. prov. for 1 yr * Shed/pLot in an indust. with 4 (6 monthly) extn. est. or a development area * Corp/Municipatity for other licences * Power/water connection *finan. assist. from banks/other institutions * procurement of mach. on hire-purchase * obtaining sales tax, excise, reg., etc. *other formalities, e.g. Import licence, etc. INVESTMENT STAGES OF PRODUCTION 5. Land & Building To obtain land - Built-in shed SG: SICs, IOCs (Note: need to obtain FI: STEP necessary licence from Corpn. or Municipal authorities * obtaining space in an industrial estate 6. Statutory Licences/ To clear remaining DICs Clearances (Depending on statutory formalities product line chosen, size of untts/wu, ,ers employed, etc. 7. Finance (Term Loan) To finance fixed assets, Financing - SFCs; State Industrial Land bldg., plant & mach. Corpn.; Coonercial Banks and other installations to some extent by granting financial assist. in case of composite loans, either directly or through SIDBI 8. Finance (Working Capital) To finance purchase of: Satisfying working Commercial Banks * raw materials capital requirements * consumables, stores/ spaces * stock-in-process * payment of wages * other manufacturing/ adnin. expenses 123 Annexure 1 ASSISTANCE REQUIRED TOWARDS ESTABLISHING A SMALL SCALE UNIT St. Steps Task Assistance required in Organisations No. Providing Assistance 1 2 3 4 5 9. Procurement of Mach. CG: NSIC SG: SICs 10. Installation of Mach. ? 11. Power connection/ water - Electricity SG: SICs, IDCs supply * application to the State Electricity Board in the prescribed form * arrangement of stand-by generating set for products involving continuous processing - Water: * application to MunizipaLity or Corpn. for connection or * our arrangement, e.g. installation of tubewell. 12. Procurement of * Assuming sufficient CG: NSIC raw material availability at SG: SICs, SSIDCs reasonable cost 13. Recruitment of To recruit staff/workers Personnel other than family members, i.e. professional/skiIled workers 14. Training Training of Manpower Resource - Training of Trainers CG: NSIET, ITCs, NIESBUD FI: EDII - Entrepreneurship CG: SISIs, NIESBUD - Dev. Programs(EDPs) SG: RDCs, CEDs Note: EDPs may be useful FI: STEP, TCOs at the inception i.e., at the pre-investment stages of production as well as at the on-going stage of production * Job skills CG: SISIs, PDTCs, ITC, CFTC Electronics Service & Trg. Centers, PPDCs, IDEMI, Central Inst. of Tool Design, CTTCs, Central Inst. of Hand Tools 124 Annexure 1 ASSISTANCE REQUIRED TOWARDS ESTABLISHING A SMALL SCALE UNIT St. Steps Task Assistance required in Organisations No. Providing Assistance 1 2 * 3 4 5 POST-INVESTMENT STAGES OF PRODUCTION 15. Expedite Formalities To speed up provision of Udyog Mitra various Licences/ infrastr. facilities 16. Provision of - Product specific fac. Too( room CG: PDTCs, Elect. Service & Trg C production support - Common service fac. Prototype development IDEMI, Cent. Inst. of TooL Design facility Modern. & Upgradation CTTCs, Cent. Inst. of Hand Tools, of technology RTCs - Quality testing for SG: DICs raw materials finished Fl: QTCs, UPTECH products, inspection fac., etc., 17. Registration (Per.) Towards entitlement to SG: DICs all SSI benefits/ concessions e.g. institutional help, Govt. concessions viz. excise, Govt. purchase programs, etc. 18. Marketing - To gain access to Entrance to a: CG: NSIC, SISIs, Central existing markets * distrib. network Inst. of Hand Tools (domestic/ exports) SG: NSIC, DICs, SSIDCs - To target potential FI: STEP markets * Govt. procur:..-nt program * subcontracting arrangment * to assist units to form into marketing consortias 015 TABLE - :ALLOCATION TOWARDS IES BY MAJOR HEADS UNDER THE REVENUE & CAPITAL SECTIONS (in 000s) IN CONSTANT PRICES AS (%) OF TOTAL COMPOUND RATES OF GROWTH (1980-81 = 100) REVENUE SECTION PER UNIT OF SSI OF REVENUE EXP. PER SSI (1980-81) (1984-85) (1980-81) REVENUE SECTION MAJOR HEADS: SSI TOTAL TOTAL TOTAL TO TO TO 1980-81 1984-85 1988-89 1980-81 1984-85 1988-89 (1984-85) (1988-89) (1988-89) (1) (11) (12) (12) (13) (14) (15) (167 (17) (18) (19) (20) (21) (A) Direction and Administration (a) Development Comissioner for SSI 8058.00 8703.11 10308.40 4.86 3.81 4.17 16.61 10.81 8.45 -10.19 -5.98 -8.10 (b) Small Industries Service Institute 44621.00 50921.07 60327.77 26.92 22.27 24.43 92.00 63.26 49.45 -8.94 -5.97 -7.47 Total A: Direction and Administration 52679.00 59624.19 70636.17 31.78 26.08 28.60 108.62 74.07 57.90 -9.13 -5.97 -7.56 (8) Training 6313.00 14204.92 12956.94 3.81 6.21 5.25 13.02 17.65 10.62 7.90 -11.92 -2.51 (C) Research & Development 803.00 3084.72 8769.64 0.48 1.35 3.55 1.66 3.83 7.19 23.34 17.03 20.15 L' (D) National Small Industries Corpn. (NSIC) 35750.00 37499.64 31212.06 21.57 16.40 12.64 73.71 46.58 25.58 -10.84 -13.91 -12.39 (E) Marketing Assistance Schemes 51.41 490.31 0.00 0.02 0.20 0.00 0.06 0.40 58.38 (F) Toot Rooms 19410.00 16063.00 12327.23 11.71 7.03 4.99 40.02 19.95 10.10 -15.97 -15.64 -15.81 (G) Subcontracting Exchanges for Ancill. Dev. 446.00 207.82 260.50 0.27 0.09 0.11 0.92 0.26 0.21 -27.21 -4.64 -16.68 (H) Field Testing Stations 0.00 1173.06 1868.68 0.00 0.51 0.76 0.00 1.46 1.53 1.25 (1) Br.Inst./Exten. Centers in Backward Areas 0.00 2008.69 3670.08 0.00 0.88 1.49 0.00 2.50 3.01 4.79 (J) Cottect;on of Statistics of SSI 790.00 844.32 1861.14 0.48 0.37 0.75 1.63 1.05 1.53 -10.42 9.82 -0.82 (K) District Industries Centers (DICs) 835.00 914.55 998.92 0.50 0.40 0.40 1.72 1.14 0.82 -9.87 -7.86 -8.87 (L) Other Items 996.00 1148.44 1079.66 0.60 0.50 0.44 2.05 1.43 0.88 -8.70 -11.25 -9.99 (M) Aid Materials and Equipments 8790.00 2086.17 5.30 0.91 0.00 18.12 2.59 0.00 -38.51 -100.00 -100.00 (N) Grants-in-aid to State Government 38367.00 87658.22 100820.78 23.15 38.34 40.83 79.11 108.89 82.64 8.32 -6.66 0.55 (0) Grants-in-aid to U.T. Gov't.s 572.00 2094.86 484.39 0.35 0.92 0.20 1.18 2.60 0.40 21.88 -37.50 -12.72 ' Total: Revenue Section 165751.00 228612.60 246946.18 100 100.02 100.04 8.37 1.95 10.48 (in 000s) IN CONSTANT PRICES AS (%) OF TOTAL - COMPOUND RATES OF GROUTH (1980-81 = 100) REVENUE SECTION PER UNIT OF SSI OF REVENUE EXP. PER SSI (1980-81) (1984-85) (1980-81) TOTAL TOTAL TOTAL TO TO TO CAPITAL SECTION : SMALL SCALE INDUSTRIES 1980-81 1984-85 1988-89 1980-81 1984-85 1988-89 (1984-85) (1988-89) (1988-89) (1) (11) (12) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (A) Capital Outlay on Village & Smalt Indust. 8419.00 28425.78 35911.19 30.76 52.13 70.66 17.36 35.31 29.44 19.43 -4.45 6.82 (B) Loans for Villages & Small Industries 2850.00 1701.67 1130.25 10.41 3.12 2.22 5.88 2.11 0.93 -22.55 -18.64 -20.62 (C) Loans & Advances to State Gov't. 15172.00 18501.81 13778.26 55.43 33.93 27.11 31.28 22.98 11.29 -7.42 -16.28 -11.96 (D) Loans & Advances to U.T. Gov't.s 397.00 358.44 1.45 0.66 0.00 0.82 0.45 0.00 -14.12 -100.00 -100.00 Total: Capital Section 26838.00 48987.69 50819.70 )00.00 100.00 100.00 18.81 -1.75 8.04 TOTAL OF REVENUE & CAPITAL SECTIONS 192589 277600.28 297765.87 9.57 1.77 11.51 Total No. of Units Registered as SSI 485 805 1220 13.50 10.95 25.94 NOTE: 1. All expenditure relating to "recurring" costs under the Schemes are defined as Revenue expenses and therefore appear under the Revenue Section of the Statistical Appendix (4a). All expenditure relating to a "one-timem cost primarily incurred in the purchase of Plant & Equipment. are defined as Capital expenses and therefore appear under the Capital section of the Statistical Appendix (4b). 2. All Schemes initiated by the Union Planning Commission under a Plan Program are defined as Plan Schemes and therefore appear under the uPlan" heading of the respective Revenue and Capital Sections of the Statistical Appendix. They continue to be presented under the "Plan" heading for the duration of the recommended period. If after the termination of the recommended Plan Period it is decided to continue the Scheme, then the expenditure is shifted to the $Non-plan" heading of the respective Revenue and Capital Sections. Alt schemes which are moved from the Plan to the Non-plan category are defined as "Committed Expenditure" and are then funded by the Ministry of Finance. 3. Under the Capital Section, "Capital Outlay" is defined as funds provided under a scheme for the procurement of Plan & Equipment which goes towards the creation of Government assets. "Loans & Advances are defined as funds which are provided under a scheme to be forwarded to the SSI for the creation of their capital base. 4. "Central Plan Schemes" are defined Schemes which are entirely funded by the Central Government; "State Plan Schemes" are defined as Schemes which are funded by the State Governments with possible Central Assistance; "Centrally Sponsored Plan Schemes" are defined as Centrally funded Schemes with State contributions. 5. There are a number of items, such as the "DIC Schemes", "Collection of Statistics of SSI", etc. which are appearing under several headings in the Statistical Appendix. This is to primarily account for the different geographical categories, i.e. funds to the Center (including U.T.s without legislature), to U.T.s with Legislatures and to the States. Source: Demand for Grants, Union Budget 1982-83, 1986-87 & 1990-91, Ministry of Finance, New Delhi. M APPENDIX A4 ANNEXURE 3 127 Year of Under the No. of Inst. Inception Purview of Centers A. NODAL AGENCIEL 1954 SIDO/SISIs Central Govt. HO: New Delhi; 27 Service Inst.; 31 Branch Inst.; 37 Extn. Centers 1972 TCOs Financial Inst. 18 1978 DICs State Govt. 483 Centers 1978 Udyog Mitra state Govt. At both State & District Levels B. INFRASTRUCTURAL SUPPORT ORG. 1955 NSIC Central Govt. HO: Okhla, New Delhi; 6 Regional offices; 12 Branch offices 1962 MIDC State Govt. ? 1961 MSSIDC State Govt. ? C. HUMAN RESOURCE DkVELOPMENT 1956 SIET Central Govt. 1961 NISIET Central Govt. NO: Hyderabad, AP; I Branch Inst., Guwahati, Assam tate'60s Integrated Trg. Center Central Govt. HO: Nitokheri, UP 1978 TCOs Financial Inst. 18 1983 NIESBUD Central Govt. HO: New Delhi 1983 EDII Financial Inst. HO: Ahmedabad, Gujarat 1985 STEP Financial Inst. 7 1988 MCED State Govt. 4 Late'80s IEDs Financial Inst. 4 7 SISIs Central Govt. ? D. PRODUCT SPECIFIC CENTERS 1956-60 CFTCs Central Govt. 2 Centers (Madras, Agra) 1986 Electronic Service . Trg. Center Central Govt. HO: Nilokheri, UP 1986-87 PPDCs Central Govt. 3 Centers (Meerut, Agra, Ranchi (non-functional) ? Various indiv. State Govt. ? product corps E. TOOL ROOMS 1955 PDTCs Central Govt. 5 PDTCs; 5 sub-centers 1969 IDEMI Central Govt. HO: Bombay, Maharashtra 1969-70 Several Tool Central/State Design Centers Govt. 7 1970 Central Inst. of Tool Design Central Govt. HO: Hyderabad, AP late'70s CTTCs Central Govt. 2 under Central Govt.; 4 under State Govt. 1983 Central Inst. of Hand Tools Central Govt. Jatandhar, Punjab F. TESTING CENTERS 1982-83 RTCs Central Govt. 4 Centers (Delhi, Bombay, Calcutta, Madras) 1986 OTCs Financial Inst. 10 (4 functional) CENTRAL GOVERNMENT INSTITUTIONS & ITS BRANCHES OF INDUSTRY DEPARTMENT OF SMALL INDUSTRY & ATRNDUSTRI DeVELOPMENT O THE SMALL INDUSTRIESI M DEVELOPMENT ORGANIZATlON. Year of Inceplon 1954-5s Noeal% eDt Sta (total):o 54 NATIONAL8MALL INDURTRIES PCEDURA CO A THE SMALL NATIONAL INSTITUTE OF INSTIU OFDESIGN PRODUCT PROCESS CENTRAL CORPORATION (NSIC) INDUSTRIES SERVICE SMALLINDUSTRY OFELECTRICAL DEVELOPMENT INSTITUTE INTITUTES (8SCe) EXTENSION PRANING MES DM)CENTER (PPCs) OF HANDTOOLS CENTERT) INPRUMTT(IEM Yeafolinceplan: 191551 Yw of ncpon Yew olfwnospiw& 17 Yof Inmpin: 1982 Year of Incepan 1969 Year of Inoope: Year of lnceior 1973 No of C*nle*s: No of Crters: No of Cenies: No of Certr: H No of Centers: No of Center: No of Ceters: H HQ Oa* 2 Cenm 2 ( A40 w.Roffaw.etermbay. M aahir 3 (allhugh 1 may be Jdl , Pu*ab 12 _gW *m 2 Exiaaon Cetrwmdtkewsetit 2 Wranchao9mmanBro.cssi m Stair(otal): 1106 stai(totl": 7 Stan (total): StMstotl & . 425 StaW(tol): 130 stalu (to* St S(Totl): 99 PROTOTYPE CENTRAL. FOOTWEAR INTEGRATED NATIONAL ELECTRONICS CENTRAL TOOL ROOM CENTRAL DEVELOPMENT TRAINING CENTER TRAIMING REGIONAL TESTING INSTITUTE FOR SERVICE &TRAIMING & TESTING CENTERS INSTITUTE 18 (M C tis TRAINNO(CFTC) CENTER(TC) CENTERS(RTOm) EMALL PUSINES CENTER (cC)OF (MIESBUD) Year of lncepiltn 1955-S Yewa ofinceptorm 1958 YearolInr*pil%, Year of Inoopilorn 1974 Yealf nospilorr 1983 Yeaomcpilon: 1986 Year of Inception: 17- Yeof dIrn:r 1970 No of Cerfrs: 5 PDTCm, No of Centr: No of Cafm,.s No of Cedr.re 4 No of Cwrfrm: New DeWh No of Cerum: No of Cenlarm: 196-7 o of Center: 5 su tersU 2 (Ma*na & MIolded, Ultrades MOolad. Ubar Pradesh 2 urxie to contral wad, GovL.4urslr StateGovt Anfra&Prodesh stall(lo) 1195 Stair(total: Stal (totl): 48 Saff (1nfa). so (mw. Stalf (tota): 32 Stai (Qotal): 124 Stal (total) 154 (Calku"s Sta gotal 9B EK/W51147F STATE-LEVEL INSTITUTIONS MAHHRA11''1111 MINISTRY OF INDUSTRY1 1111:1,1 MAHARASHTRA DIRECTORATE OF INDUSTRIES I I STATE PRODUCT MAHARASHTRA STATE MAHARASHTRA REGIONAL DISTRICT MAHARASHTRA CORPORATIONS SMALL INDUSTRES INDUSTRES DEVELOPMENT INDUSTRES UDYOG MITRA CENTER FOR e.g. MAHARASHTRA DEVELOPMENT DEVELOPMENT CORPORATION (RCD) CENTERS (DICS) ENTREPRENEURSHIP LEATHER CORPORATION CORPORATION (MI) DEVELOPMENT CORPORATION MSSIDC) (MCED) (LIDCOM). c Year of Inception: 1981 Year ofinceptIon: 1962 Year of Inception: 1970 Year of inceptlon: 1978 Year oA Inception: 1979 Year of Inception: 1988 No of Centers: No of Centers: NoolCenters: 4 NoolCenters: No of Centers: No of Centers: 6 Regional & 29 6 Regional offices 20 In Maharashta At both Head office District Olces (483 all-nda) State & Distict ems at Aurangabad & 3 RegIonal Centers Staff (total): 600 Staff (total): 3000 Staff (total) : Varies per Staff (total): Varies per S-Aff: 3 (the rest Staff (total): 60 RDC. 250 at DCKL center e.g. Nasik has 30. provided on deputation by the 5 tunding bodes) DISTRICT LEVEL ZUM COMMITTEES Eie5114& FINANCIAL INSTITUTIONS FINANCIAL SUPPORT OF IES AND SPECIAL ASSISTANCE PROGRAMS SCIENCE & QUALITY TESTING UP-GRADATION INSTITUTE OF ENTREPRENEURSHIP TECHNICAL TECHNOLOGY CENTERS (OTCs) OF TECHONOLOGY ENTREPRENEURSHIP DEVELOPMENT CONSULTANCY ENTREPRENEURS (UPTECH) DEVELOPMENT INSTITUTE OF INDIA ORGANIZATIONS PARK (STEP) (EDII) (TCOs) Year of Inception : 1986 vearof inception : 1988 Year of Inception: Year of Inception: Year of Inception : 1983 Year of Inception : 1972 Late 1980s Late 1980s No of Centers :7 No of Cent No of Centers :4 No of Centers :4 No of Centers: NoofCenters: :18 :10 (4FIllonal) Headquarters: Ahmedabad, Gujarat Fundling/Budgeting: Funding/Budgeting: Funding/Budgeting: Funding/Budgeting: Funding/Budgeting: FundinglBudgeting: IDBI IDBI S81 IDBI IDBI IDBI IFCI cOther al-Inda Financial ICICI IFCl ICICI Industry Assoc./~ IFCI ICICI State/Reglonal Coleges Tech Institute/ Institutions SBI Lead Banks State Government State Govts. Lead Sanks SFCs SFCs EKIW51147a 128 APPENDIX A5 DELIVERY OF INDUSTRIAL EXTENSION SERVICES IN FOUR EAST ASIAN ECONOMIES I. Etr=oductio 1. The success of industrial and export development of a number of East Asian countries are based on some common denominators which go beyond flexible and trade oriented macro-policies. A dominant feature in all these countries is a successful governmental support program for industrial firms' needs to improve their products, reduce their costs and introduce new technologies to become and then stay internationally competitive. There are differences in the types of programs followed, but the focus has been on assistance to small enterprises. Hong Kong continues to have an active economic interest in relatively low technology products. Garments, textiles, electronics assembly, *and metal working are all more advanced than in the next-in-line newly industrializing economies,. although the gap is not large. Taiwan and Korea are rapidly afoving into higher quality variants; Hong Kong is moving in the same direction, but at a slower pace. Moreover, Hong Kong firms are, on average, smaller than those in Taiwan, which in turn are substantially smaller than the average in South Korea. 2. These differences are reflected in the orientation of the productivity centers and extension services in the respective countries. The Taiwanese and Korean centers deal with emerging technologies, particularly automation. As a consequence, they tend to deal with larger firms that are ready to invest in such technologies (although this was less true of the Taiwanese Center even as recently as five years ago). The Hong Kong Productivity Council (HKPC) is more concerned with developing small productivity aids which can be adopted by a multitude of firms. The consultancy arm of HKPC, for example, has over 900 clients in 1988-89 and of these, 500 companies employed less than 100 people. Their training programs targeted 15,000 people (in mainly short-term courses) principally from the garment, textile and electronics assembly sectors. In the following paragraphs we will look at the productivity center of Hong Kong and Taiwan and then contrast them with the extension services of Thailand and the Philippines. II. The Hong Kong Productivity Councll (HKPC): Tasks and Activities 3. Activities. The motivation for HKPC is well articulated in a promotional brochure which states that "Management in local manufacturing enterprises often realize the fact that their production resources have not been efficiently utilized. The major causes are lack of up-to-date knowledge and methods in effective use of manpower, materials, machinery and factory space on the part of the factory management." (Hong Kong Productivity Center: Shop-Floor Productivity Improvement for Manufacturing Management, Hong Kong, 1985). The premise is that significant inefficiencies exist within firms which have both technical and organizational sources. Therefore better training for production workers and supervisors in short classroom sessions, productivity aids for improving quality and inventory control, specific technical support, and better information and exposure to international markets should improve productive efficiency. 129 4. HKPC's activities can be classified into four categories (Table 1). These categories may be found across many productivity centers in Asia and Europe. HKPC however, offers a wider range of serrices within each category and also addresses more sub-sector specific consultancy needs than a typical productivity center. HKPC technical services have been especially active in the metals and electronics area. The sectoral focus of the classroom training programs has been garments, textiles and electronics assembly. 5. In Europe, different sub-sectors are dealt with by different institutions. Even in Korea and Taiwan, there is some institutional specialization. HKPC management however feel that in the early stages of industry development, such specialization is unlikely to be economical. In other words, there exist some economics of scale stemming from similarities in basic productivity issues (quality and inventory management, plant layout, production control, supervisory training) across sectors. 6. Resources. Forty percent of the staff have professional qualifications (undergraduate degree or more). More than a quarter of the professional staff: specialize in mechanical and industrial engineering. Electronics and information technology professionals are the fastest growing staff group. HKPC has been. unable to keep pace with private sector salary increases and has, therefore, been forced to rely increasingly on younger, less experienced staff. Even so, in 1989, 103 professionals had more than six years of practical experience. HKPC has had a strong tradition of "mentoring", in which highly experienced international experts have been employed in critical positions, on internationally competitive salaries. They have then been responsible for developing the internal cadres. Substantial resources are also expended in training the staff both in Hong Kong and abroad. 7. Besides specialized knowledge of the industry, laboratories and workshops are a key element of manufacturing support provided. These provide HKPC staff with the measuring instruments and hands-on experience that gives them credibility with the industry. Laboratories and workshops are also used by industry, as job-shops, especially when capacity in industry is being heavily used. The HKPC laboratories and workshops have equipment that is more advanced than that of the average firm, and in some instances is the best available in Hong Kong. However, the equipment is not at the international frontier, since its relevance for industry would then be limited. Investment in equipment is significant and consumes a considerable proportion of available resources. In 1988-89, investment at HK$ 28 million accounted for 22% of all expenditures (1987-88, investment was HK$ 13 million, which was 14% of all expenses). The much higher investment in 1988-89 followed a judgement that much of the capital was obsolete: at the end of (financial year) 1988, fixed assets were valued at HK$ 25 million, of which HK$ 14 million worth was considered obsolete in 1989. 8. A more intangible resource possessed by HKPC is the large network of resource persons it has cultivated over the years. This is particularly the case for the training activities. Training depends heavily on professionals in industry who are induced to teach the short-term evening courses. HKPC's role has been in identifying such people, developing and upgrading curricula and in promoting the courses. The success of this approach depends on identifying the right teachers and in tailoring both the content and the length of the program to the needs of students. 130 9. In 1989, HKPC, with a staff of 400 and fixed assets of HK$ 45 million, earned HK$ 45 million worth of fees from its various activities. In recent years, fixed assets have grown faster than either employment or income. The rise in the capital-labor ratio has been accompanied by increases in revenues per person. Because of the need to modernize equipment and keep the network of experienced teachers, HKPC's expenditures have been substantially above its revenues. But even the "free market" Hong Kong government has viewed the goals of training and improving the efficiency of SSIs as sufficiently valuable to subsidize 60 percent of HKPC's operations. While HKPC's income earning activities have grown rapidly in the past five years; subsidies have kept pace. 10. Evaluation. The Hong Kong Productivity Center would seem to represent an example of a successful agency providing pragmatic and highly effective extension services to mostly small and medium sized enterprises. Firms receive help in simple trouble-shooting tasks as well as in more complex measures for productivity improvement in technology and management practices. While Productivity Center Staff have performed the simpler tasks over the phone, its personnel have increasingly gone to the firms, as the requirements have become more complex. For a-small are a which the city state of Hong Kong represents,. this has not been a major problem. In large countries of course this requires a substantially larger number of branch offices, which in turn would need more public resources. III. The China Productivity Center in Taiwan 11. The China Productivity Center (CPC) was established in 1955 as a joint project of the Taiwanese government, USAID, and the business community. Its objectives were to disseminate industrial technology, promote marketing, increase productivity, and upgrade the national economy. It is based on productivity centers organized in several European countries under the Marshall Plan. While not designed exclusively to help SSIs, its clientele has been overwhelming small and medium sized enterprises.. 12. History and Objectives. As the following history shows, CPC was successful in supporting Taiwanese firms in both modernizing and exporting, but in the process it had to change its structure and approach several times. In 1959, CPC added a trade promotion division and changed its name to the China Productivity and Trade Center. In 1960, CPC joined Japan, Hong Kong and South Korea in founding the Asian Productivity Organisation in Tokyo. In 1964, it established the Chinese Society for Quality Control. In 1965, the CPC established the China Packaging Institute to help firms improve the packaging of their export products. In 1967, it established the China Industrial Design Institute to promote the style and design of Taiwanese products. In 1968, it spun off the Trade Promotion Division as an independent unit, which became the Chine External Trade Development Council (CETRA). 13. Starting in 1975, the CPC began to face difficulties. The domestic business community had won recognition in international trade, and the talents and techniques in the local business community were becoming stronger. Products made in Taiwan were creating their own markets in the world. The CPC was finding it more difficult to recruit talent, acquire advanced techniques and open up new markets. Although the government and the CPC itself constantly reviewed th6 organisation's mission and changed under the pressure of the changing situation, the CPC contribution to Taiwan's industrial success was more modest between 1974 131 and 1984. 14. A Factory Automation Task Force (FAFT) was established in 1983, based on the idea that Taiwan had to adopt automation. This had been advocated very forcefully by Dr. Casper Shih, a Taiwanese national, who had been in charge of high technology development for General Electric in Canadal. In a critical lecture in Taiwan on the influence of the trend toward automation, Dr. Shih discussed the example of an applied flexible assembly system for greatly increasing the competitiveness of motor manufacturing and the trend of using computer-aided design and computer-aided manufacturing (CAD/CAM) in designing and manufacturing molds. Government officials quickly realized the importance of factory automation in the international market. In the context of the increasing demand for large varieties of items in small quantities and the spread of automation technologies in advanced countries, Taiwan needed to improve its competitiveness in export markets, especially as local labor costs were rising rapidly. Flexible manufacturing systems (FMS) also had the advantage of shorter production cycles than traditional methods, and the greater uniformity of quality was better suited to the demands of international markets. 15. The government established FAFT four months later, with Dr. Shih as its Director. The principal objective of FAFT was to promote factory automation in response to rapidly rising wage rates, increased competition from lower wage countries, and continuing labor shortage on one hand, and the trend towards increased automation and flexibility in developed countries, on the other. FAFT and CPC merged in 1984 under the management of Dr. Shih. 16. Resources Program. By 1988, the new CPC had a staff of 426, 56% of whom had bachelor's degrees or above, and an average age of 33. Most had many years of industrial experience. Besides its own staff, CPC relies on consultants and engineers borrowed from private companies and other government organizations, and also trains industrial engineering students. In addition to the main office in Taipei, the CPC has three regional offices. The new CPC's main activities consist of three kinds of programs: training, consulting, and promotional programs commissioned by the government. With respect to the training program, CPC trains industry personnel in order to upgrade their knowledge and techniques. In fiscal year July 1987 to June 1988, CPC provided 1,085 classes to more than 35,000 participants in subjects ranging from managerial techniques to automation technology, manufacturing engineering, and information technology. 17. CPC's consulting services help small and medium-sized factories "learning by doing". Services include consulting on production technology and automation, in-plant operation improvement, plant rationalization, and management systems. Revenues from such consulting make up a large part of CPC's earned income. This program is supported by a promotion program which helps the government to introduce new ideas, propagate new awareness and promote new actions through seminars, publications and other media events. In 1987, 70,000 'The idea of the need for Taiwan to adopt factory automation was actually launched earlier. In 1980, Prime Minister Yun-Suan Sun declared at the anniversary meeting of the Chinese Institute of Engineers that automation, information, energy and high-tech materials were the four important technologies that the government was promoting. Later that year, the Applied Technology Advisory Group of the Executive Yuan (EY) set up a Production Automation Steering Group. In August 1982, the EY approved an 8 year Production Automation Promotion Plan (PAPP), and more than 20 organizations were assigned to promote automation. After six months, however, Minister Yao-Tung Chao decided that progress in promoting factory automation was not sufficient and invited Dr. Casper Shih to Taiwan. 132 factories subscribed to Productivity Monthly, and there were significant sales of video tapes on productivity issues. 18. In addition, the CPC has been commissioned by +he government to develop two national projects - the "National Productivity Improvement and Promotion Program" and the "National Quality Promotion Program" - to reinforce the competitiveness of the business community. A series of campaigns on productivity were organized for local entrepreneurs, focusing on such themes as "Increasing Productivity for a Better Life," Creativity and Innovation," "Human Resource and Productivity," and "Quality and Productivity." 19. CPC also organizes many overseas study missions aimed at solving the specific problems of a local industry. This activity serves small and medium sized firms in two ways: first, they learn new production methods and ideas; second, they learn to help other factories that are behind them technologically. In 1986, 10 study missions including 315 participants were organized; in 1987, 14 study missions involving 417 participants were organized. Countries visited included OECD couhtries as well as some developing countries. 20. 'Besided its extensive array of courses and other training programs, CPC visits plants throughout Taiwan and helps manufacturers solve specific problems. Over a period of two years, CPC visited more than 1,000 plants. In connection with the factory automation programs, CPC sends out a team of experienced engineers covering industrial engineering, mechanical design, mechanical manufacturing, industrial planning, and CAD/CAM. CPC has discovered that in 40% of the cases, firm problems involve lack of adequate rationalization of the production process because of insufficient knowledge of industrial engineering. These can be remedied without much need for capital investment. When capital investments are required, the plants can tap special subsidized financing for the purchase of automation equipment. To increase the impact of technical assistance, most firms that have received CPC'c subsidized advice are required to demonstrate to other firms how they have solved similar problems. CPC has also carried out more than 500 research projects on improving production efficiency. Finally, the CPC works as a catalytic agent linking entrepreneurs with research centers to solve difficult technical problems. 21. Finances. CPC's financial condition was very difficult during the recessionary period of the mid-1970s, due to the interruption of governmental projects. After the period of reconstruction, CPC strategically apportioned its business to the private enterprise sector to gain more flexibility in handling businesses and to focus more on market orientation. The percentage of revenue from private enterprises grew from 49% to 60% in 1988, with an average profitability rate of 6.05%. Projects delegated by the government remained constant at about NT$ 130-150 million, but their share of total revenue fell from 51% to 40%. 22. Evaluation. Through broad methods of education, consulting an, promotional activities, the chain effects of CPC are many. The willingness of many manufacturers to pay full tuition and consultation fees for continued assistance attests to the value of CPC's services. For example, the revenue from CPC's training activities in 1987 was 2.5 times the amount in 1983. In addition, CPC has expanded the market for management and automation services, but because it has not expanded its size, CPC has had to turn down some companies' applications to avoid overloading. 133 23.CPC's basic plan is to act as a catalyst, allowing the increasing demand from the local market to be met by private consultancy enterprises. Taking production and automation techniques as an example through promotional activities mentioned above, CPC has covered the following techniques: FAS (Flexible Assembly System), PLC (Programmable Logic Controller), CAD (Computer-Aided Design). These techniques have been broadly disseminated and are now deeply rooted in small and medium-sized industry. This has greatly increased Taiwan's productivity. It is clear that CPC has been providing relevant extension services. However, scope and nature of these services have changed rati.er dramatically over time. By realizing the need to take the plunge and contribute to the introduction and dissemination of factory automation, they became an extremely useful source of information for firms which had very little means to know and adapt to sophisticated technologies. IV. Information Services to SSIs in Thailand 24. Organization and Activities. Prior to 1970, Thailand's government did not emphasize different aspects of services, for industry. :The main role of government offices was:to control industrial business by enforcing rules and regulations. However, during the past 15 years, these policies have changed, and public agencies have played a more significant role involving several ministries (the Ministry of Industry, Ministry of Commerce, and the Ministry of Sciences, Technology and Energy). In order that entrepreneurs may receive benefits from a multitude of government and private agencies, the types of information and services may be classified according to the three major stages of development: (1) the establishment of the factory; (2) operation; and (3) expansion. At each stage entrepreneurs are able to obtain a variety of services and information, which are specified in Table 2. It is remarkable that not only for each possible need there exists an agency but there are a number of organizations, the activities of which organizations overlap. 134 TABLE 2 Pre-Setting of Factory Types of Information and Agencies That Provide Service Regional Services - Market Information, such as - Industrial Productivity Division demand, market size, and - Industrial Development Center competition - Industrial Promotion Center - Product Information, such as - Provincial Commercial Office sources of raw materials and their - Provincial Industrial Office prices, Information on machinery - Thai Chamber of Commerce and tools, production procedures, * Federation of Thai Industries technology and production - Technology Transfer Center techniques - Thailand Institute of Scientific * Information on sources of funds and Technological Research - Product information, product - Department of Science Services standards . Board of Investment * Forms and procedures for setting - IFCT and other financial up a factory institutions - Infohmation on Investment -**ISU ' guidelines and joint ventures, Industrial Economic Division Including list of potential joint venture partners. Durinq Operations Types of Information and Aqencies That Provide Service Regional Services - Information on management concepts - Industrial Productivity Division and techniques, such as marketing - Small Industries Association management, financial management, - Technology Promotion Association accounting, production management (Thal-Japan) and personnel management - Thai Industrial Standards - Consulting services and solutions Institute to business problems - IMET * Product development Information, - Industrial Promotion Center development procedures and - Federation of Thai Industries processes - Department of Export Promotion - Current economic conditions and * ISU trends as well as other - Thai Chamber of Commerce information on the business - Provincial Chambers of Commerce environment Expansion Types of Information and Aqencies That Provide Service Reaional Services - Strategies for business growth * Industrial Productivity Division * Information on domestic and - Industrial Development Center intemational markets - Thai Chamber of Commerce - Information on potential joint * Technology Transfer Center venture partners and joint venture - Industrial Promotion Center procedures - Department of Export Promotion - New Product information and - Technology Promotion Association product development (Thai-Japan) - Bank of Thailand - Federation of Thai Industries 135 25. The Ministry of Industry's most important service center is the Department of Industrial Promotion, which is currently divided into five divisions, one office, and five centers. Related agencies are the Industrial Development Center and Industrial Productivity Division, Industrial Service Division, Rural Industrial Promotion Center, and the Rural Industry Information Service Center. There are also offices offering related services, such as the Thai Industrial Standards Institute and Provincial industrial Offices. The Ministry of Commerce also takes charge of several agencies - namely, the Provincial Commercial Office and the Department of Export Promotion. In addition, the Ministry of Science Technology and Energy is in charge of the following agencies: the Thailand Institute of Scientific and Technology Research and the Technology Transfer Center. 26. Thailand's Industrial Development Center was set up to be the core coordinator between entrepreneurs and other agencies regarding investment. Its main objectives are to provide assistance for new investment, especially in small and rural industry, by means of .the provision of training for investors and advise and.guidance on the establishment of projects and factories. The agency also tries to persuade industries to invest in information services and gives guidance on management problems. Their services include advice and suggestions on investment project development, investment coordination, development of entrepreneurial skills and development of an investment information library. 27. The Industrial Development Center is divided into five divisions: the Investment Consultation Service, Investment Coordination Division, Entrepreneur Development Division, Project Development Work and the Local Industrial Development Division. The Industrial Development Center undertook the following work in the second half of 1989, which is quite typical for any recent year. (a) Six seminars offering investment advice to 400 participants and five training sessions for investors with 145 participants. (b) Project development for 30 new projects. There are currently two hundred projects under assistance. (c) Investment coordination through collection of data related to 20 investing companies. (d) Information Services for 1,205 persons demanding general data and another 114 requiring specific data. Aside from public service, the Industrial Development Center has done public relations activities such as press conferences, press pamphlets, publications, booklets and seminars sponsored together with other associations. 28. The Industrial Promotion Department is also in charge of rural services. The center provides technical assistance to small-scale industries, such as academic consultation, design and testing of products, packaging techniques, and management and factory administration. It puts emphasis on local industry, but the budget and personnel are limited, and the services it provides are not extensive. 29. The Industrial Productivity Division (Productivity Center of Thailand) 136 aims to increase the productivity of industry and agriculture . Its main duty is to provide in-house and off-site training, set up seminars, provide consultation, render information services, set up a library and loan teaching aids. Seminars and training involve five sections: training services and foreign relations, guidance, technical management, industrial engineering, and a small industry promotion project. The Industrial Productivity Division also provides technical and academic assistance to small-scale industry such as training advice on modern production techniques, design and testing, packaging techniques and factory management. Activities involve training in accordance with industry's needs, reports on industrial techniques, technical guidance, and dissemination of technical reports. Each year there are about 5,000 participants in the training program. 30. Evaluation and Proposals for Change. The system of IES in Thailand suffers from a common fault of many programs, in that a multitude of activities attempted inhibits the intensity and penetration of any one service. Hence reducing its effectiveness. The departments dealing with information distributiop have a good array of information relevant to small scale industries. Nevertheless, the level of service and penetratfori among regional industrialists is not very high, since service is concentrated within the region's main province. There is a high dematid for services among small scale industrial entrepreneurs, however they are critical of its present quality and usefulness. In a 1981 study (based on a survey) entrepreneurs were not ready to use much of the official information for their operations, as they were satisfied with their own sources of informal information, which they received from business colleagues or from the mass media. Many entrepreneurs do not wish to have contact with governmental offices unless absolutely necessary. Others were unaware of how to seek assistance and the likely benefits that they might receive. Some, who are aware of the available services are reluctant to use them because they consider the procedures for obtaining information far too complicated. 31. Following this user survey and in-house assessments of the structure of IES the Government came out with both short and long-term recommendations. The short-term solution involves establishing a committee responsible for services to enhance cooperation among relevant departments, in order to eliminate overlapping tasks. Furthermore, it launched a publicity campaign to make entrepreneurs more aware of the range of services on offer and the benefits that might be derived. In the long-term it is proposed to increase regional industrial information service centers with networks throughout the country to improve access to information. These limited efforts however, are unlikely to overcome the poor impression of the usefulness of the industrial extension services unless it is recognized that the quality of the service itself needs to be improved. V. Industrial Extension In the Philippnes 32. Activities. Together with the financing programs for small and medium industries, the Government introduced two kinds of industrial extension services in 1974. Run by the Ministry of Industry, one offers assistance in the preparation of projects for finance out of the enterprises's own resources or by the financial institutions. The other undertakes a range of entrepreneurial counselling and other advisory services. The former is known as MASICAP (the 137 Medium and Small Scale Industries Coordinated Action Program)Z and the latter as the SBAC (Small Business Advisory Centers') program. The two are administered under one department and share the same field offices. While the following analysis concentrates exclusively on the Ministry of Industry's programs it should be added that several other Government agencies offer services to small enterprises. The full range of services have been documented in a variety of studies ( ............... ). The variety of agencies are represented on a Commission for Small and Medium Industries, which has the responsibility for developing overall policies3. 33. The Small Business Advisory Services. The largest element in the Government's extension programs, at least in terms of professional staffing, is to provide advisory services to small industries. From the beginning of the Government's SMI program these have always been considered desirable since it was felt that the demands of smll enterprises would not necessarily be solely for finance. This is particularly true for enterprises just starting up, when most begin with very small investments. Since 1974, Small Business Advisory Centers (SBACs) have been set up in each of the 12 administrative regions of the country; they now employ over* 100 regular professional staff variously specialized in . engineering, finance and business management. 34. The services are provided free of charge and cover most aspects and stages of small business activity. Most of the clients are "walk-ins" or referred to the SBACs by others. About 30% of the SBAC's work is in what is called entrepreneurial counselling for new or prospective business people. The advice offered here is about marketing opportunities, whether the industry is overcrowded, sources of equipment, sources of finance, suggestions on cash flow management, outlining various pitfalls etc. Seminars for small business proprietors are sometimes held in the centers. Another 40% of activity is for established businessas with "no serious problems" but who visit the SBACs to talk to the staff about the running or expansion of their businesses4. While advice on specific technical, marketing or financial issues is often sought, the SBAC staff say it is as often difficult to pinpoint precisely what it is that the owner may wish to discuss, or, in the case of a business with "serious problems, " what the causes of the problems are. Reports are prepared if requested, and the SBAC staff member may work with a business over a long period. When a matter lies outside the specialization of the staff, referrals to the specialized trading, industrial and research associations are common. aIn 1980 the services provided under the MASICAP program were formally taken over by SBAC. For convenience, the old acronym has been retained. Members of the CSHI are : the Ministry of Industry (which chairs the Comission); the Department of Trade (to which the National Cottage Industries Development Authority is also affiliated); the University of the Philippines' Institute for Small Scale Industries; the Development Bank of the Philippines; the Central Bank of the Philippines; the National Economic and Development Authority; the Department of Local Government and Community Development; the National Science Development Board; the National Manpower and Youth Council; the Design Center of the Philippines; and the Food Terminal Incorporated. Other agencies (such as the Technology Resource Center) are also involved in the program but are not members of the CSMI). 'One of the distinguishing characteristics of very small businesses is that the owners control all aspects of the business, maintain inadequate records and have not felt the need for accountants or managerial support. The SBAC staff find that the most noticeable tendency of small businesses when expanding is for the owners to cling to the control of all aspects of the business, even when it becomes too large for one person to manage. 138 35. Follow-up and Evaluation of SBAC Projects. There are presently no procedures which require the SBAC staff to follow up and report on the progress of the enterprises after they have sought advice. Current records provide descriptions on the backgrounds of the clients and often quite detailed analyses of the technical, financial and managerial aspects of the business. Since the staff often spend a considerable time with the business (from a few hours to several weeks in some cases) a detailed picture of the business and whatever problems are faced is obtained. Contact is commonly maintained with the business afterwards, but only informally. 36. There is a need for formalizing the follow-up work and keeping records on current sales, employment, investments and expenditures in the enterprises assisted, and reporting on any current issues. Apart from providing feedback on the program, the information so generated would be useful for reporting on the conditions of small businesses in the provinces (though in both instances it would need to be supplemented by studies of businesses not assisted by the program). While, a variety of public institutions and several private sector Institutions publish reasonable up-to-date surveys and studies of large industries, there is no up-to-date information on small businesses. The absence of information on the subsequent development of business after the SBAC staff have worked with a firm also makes it difficult to assess the usefulness of the services. The costs of the programs averaged about P.2,500 ($340) per client5; but there is no information at present that would enable the benefits to be determined. 37. The SBAC staff classify their services under the following headings: financial (advice only), accounting and record-keeping, management, marketing, technical and general services (covering more than one aspect of the business). It is not difficult to think of instances where these services may be found or developed in the private sector. Accounting firms, banks and general consulting firms are sources of management advice, and employ staff who normally have substantial experience of industry and knowledge of local business conditions. In the Philippines, services offered by commercial banks are expanding, and as with SBAC's advisory services, these service programs are designed to create an awareness of the value of proven business management practices. In addition, the objective is to stimulate the demand for private sector services. A potential conflict arises from the SBAC's services being free of charge in certain categories of services in which the program is competing with the private sector (e.g. in accounting). 38. Project Preparation Services (the MASICAP Program). The idea that led to the MASICAP program is to reduce the transactions cost (risks and administrative costs) facing small firms in obtaining loans. Poor record keeping taises these transactions costs considerably. Before the extension programs were introduced in 1974, lending facilities were available to small enterprises, but had been little used in practice. The reasons given were "(a) that the institutions had not developed the capability of handling a large volume of small loans to small industry, and (b) the majority of small industries, having previously had no access to institutional credit, were unable, at least initially, to exploit this new resource properly and fully." With the The average is P 8,000 if only clients for whom written reports were prepared are counted. It would, however, be wrong to ignore c.hose assisted less formally. 139 introduction of term-lending facilities in 1974, transactions cost to both borrowers and lenders were expected to rise further since project analyses (involving forecasts of cash flows) were considered to be necessary for all except small projects and businesses of good standing. 39. Hence the conceptual idea was to absorb at least part of the transactions cost in the extension program, since the extension workers could undertake much of the preparatory work in submitting projects to the banks. In doing so they could also serve an educational purpose of disseminating ideas about business management practices and information on production methods. The theory was that once the preparatory work had been done successfully for an enterprise, the transactions costs would be permanently reduced and furthermore, with increasing numbers of projects financed, there would be a greater willingness on the part of the financial institutions - provided the program had generated a satisfactory proportion of successful projects - to finance small enterprises independently of MASICAP. 40. The program was designed not to be a permanent aspect of the Government's programs. It was also intended to be educational in itself, and a means of supplying public and private institutions with experienced field workers having a knowledge of the workings of small businesses. The extension workers are given two year appointments, and practically all are recruited by financial institutions, industry or other government agencies on leaving the program. 41. A key feature of the staffing policies is the recruitment of senior students, with outstanding academic records from colleges and universities' where they may substitute some course work for field work in the program. In 1978 the MASICAP staff totalled 147, of whom 134 were field staff on two year appointments, and only 4 (all headquarters) were permanent. Since then, a core of regular and experienced staff have been recruited in each of the 12 field offices to supervise the extension work and introduce more maturity and continuity in the program. Training of the extension workers is provided through lectures from representatives of various public and private financial institutions, government agencies and the senior extension workers. The project preparation services of MASICAP have helped to make institutional finance available to a large number of enterprises in the provinces that would not otherwise have had access to it. Administrative costs are low, about 3-5% of project investments. Despite some innovative aspects of this program, there are problems, predominantly related to the failure rates of new projects assisted. Oftentimes expectations are too high, and project sizes too large. Steps are in train to alleviate this involving the extension workers in follow-up work and supervision of the projects after financing. 140 APPENDIX A6 CENTRAL GOVERNMENT PURCHASE O 881 PRODUCTS Introduction 1. Since the mid fifties, and the initiation of the Government Stores Purchase Program in 1956, it has been an implicit policy to extend marketing support to the small scale sector through preferential procurement policies. The rationale for the policy has been that as a large purchaser of a variety of goods, the Government would not only alleviate some of the marketing constraints faced by small firms, but that it would provide qn effective means to transmit market information on standards and specifications and hence encourage imprbvements in the quality of output. Further impetus was given to this policy in the Industrial Policy Resolution of 1977, which extended the application of purchase and price preference for SSIs to all departments of the Central Government and the Public Sector Enterprises and Undertakings. In October 1979, a Standing Review Committee under the Ministry of Supply was established to assess and monitor the effectiveness of this procurement policy. 2. In the decade following the establishment of the Standing Review Committee, Government purchases were classified into six groups (See Annexure 1), with one category of items reserved exclusively for procurement from SSIs. This latter group (Group IV) encomptses over 400 items (See Annexure 2). This classification has been subsequently modified into two broad divisions, that is, those items reserved for procurement from SSIs, and all others. In addition to the product reservation, the Directorate General of Supplies and Disposals (DGS&D), which has administrative responsibility for the purchase program, has a mandate to encourage procurement of non-reserved items from the SSI sector, through a combination of policies of "Preferred Purchase", price preference and fiscal and procedural incentives. In the first instance, where SSI products are technically comparable with those of the large sector, preference is automatically accorded to the former. Second, SSIs are given a price preference over medium and large firms of 15%. Third, there are fiscal concessions to small firms registered with the DGS&D, in the form of reduced registration fees and waiver of the compulsory deposit of 5% of the value of a contract for those SSIs registered with the National Small Industry Corporation (NSIC)' or the various State Director of Industries. Finally, there are concessions for SSIs with regard to the variety of procedural formalities. 3. For all normal procurement from manufacturing firms, it is necessary to be registered with the DGS&D. To facilitate this process for small firms, and to avoid a multiplicity of registration with various government agencies, a Single Point Registration Scheme, was initiated in the early 1980s. NSIC has a pivotal role in this, in that once a firms technical and commercial viability is 1/ For a futter description of NSIC see Chapter 6 in Volune 1 and Appendix AM. 141 verified, and registration ensures, that it is recognised by most public enterprises, as well as important departmental enterprises such as the railways and telecommunications which procure significant amounts of SSI production, independent of the DGS&D.2 B! Procmresent 4. Sales of the SSI sector to the total public sector (Central and State Governments, departmental enterprises and public enterprises) is not known. For the Central Government and the departmental enterprises it is estimated at approximately 2 to 3% of total SSI output, although this considerably understates its importance given the large purchases made by public enterprises under sub contracting and ancilliarization arrangements, as well as purchases by State Government and municipal authorities. Furthermore, for certain product categories (see paragraph 6 below) thq importance of public sector procurement is significant. 5. In the decade following the introduction of the Government Stores Program, the Central Government's procurement of SSI products (inclusive of Khadi and Handloom item) increased nine fold from Ra.28.3m in FY 56/57 to Rs.241.6 m in FY 66/67. Thereafter, the pace of growth slackened, reaching R9.3.37 billion by PY 89/90. The share of SSI products in the total domestic purchase of DGS&D has risen from less than 2% in the fifties to about 11.5% in the eighties. However, if we exclude petroleum products from the domestic purchases of large scale manufactured goods (essentially purchases from public sector refineries), the share of the SSI sector is twice as large. On this basis the share was about 23% in FY 88/89, which compares closely with SSIs share in output of the factory sector. 2/ Further benefits of registration with NSIC include information on tender enquiries from government departments, indents received by DGS&D and specifications of stores procured by government purchase agencies and compf Led by NSIC. As part of its mandate to promote the sate of SSI products, NSIC has been an active partner in the procurement program of the OGS&D. The share of orders pLaced with samatL firms by DGSD, with the direct assistance of NSIC has increased from a tow of 36% in FY 80/81 to over 70% in FY 89/90. 142 Table 1 DOS&D Procurement of SSI Output (Rs. million) Khadi Other S Total S Total Domestic 88X Share Procurement (0) FY 51/52 - 59/60 5.2 18.4 23.6 958.1 1.9 (average) FY 60/61 - 69/70 11.4 230.7 242.1 3,502.8 6.6 (average) PY 70/71 - 79/80 21.0 888.2 909.2 8,566.0 10.3 (average) FY 80/81 -. 88/89 31.9. 2,656.1 2,688.1 23,099.8 . 11.4 (average) FY 80/81 PY 80/81 28.2 1,845.3 1,973.5 14,325.8 13.5 FY 81/82 25.6 2,189.4 2,215.0 17,685.6 12.3 FY 82/83 25.3 2,155.1 2,180.4 18,021.1 11.9 FY 83/84 35.3 2,668.9 2,704.2 22,127.4 12.0 FY 84/85 26.4 2,554.4 2,580.8 24,099.8 10.5 FY 85/86 36.6 2,773.0 2,809.6 25,579.8 10.8 FY 86/87 82.0 2,762.9 2,844.9 30.772.1 8.9 FY 87/88 20.6 3,662.8 3,683.4 26,532.4 13.8 FY 88/89 7.9 3,193.3 3,201.2 28,754.3 11.1 6. The largest concentration of purchases from the SSI sector, is in textiles, constituting about 35% of purchases from small firms and about 30% of purchases of total textile products. Other important categories include chemical products, machinery, metal products and non electrical machinery. The small scale sector holds an overwhelmingly dominant position in leather footwear and other leather products, and metal products. This is due to the bulk of the items in the broad product category being reserved for procurement from a small scale firm (i.e. a Group IV item). 143 Table 2 Composition and Share of DOS&D 881 Purchases 0 (figures in parentheses represent share of 881 purchases in a given year) 1"83 JIA1987 1989 Textiles 4.14 (37.8) 17.3 (29.2) 30.8 (28.6) 31.2 (33.0) Leather Footwear 97.9 ( 5.8) 60.1 ( 4.0) 87.1 ( 4.6) 70.4 ( 3.2) Wood Products 34.5 ( 2.4) 4.6 ( 0.3) 34.6 ( 4.0) 30.4 ( 3.0) Paper Products 7.1 ( 1.3) 56.3 ( 2.1) 25.8 ( 2.9) 2.8 ( 0.9) Leather Products 99.3 ( 0.8) 100.0 ( 1.2) 92.1 ( 0.9) 99.1 ( 0.4) Rubber Products 7.1 ( 1.8) 12.3 ( 1.4) 4.4 ( 1.5) 5.2 ( 1.4) .Chemical Products 38.9 (13.1) 30.2 (1g.6) 51.8 .(16.3) 519 (13.5) Non-Metallic Minerals 0.6 ( 2.5) 0.6 ( 3.4) 0.1 ( 1.0) 0.3 ( 1.4) Basic Metal Industries 3.7 ( 2.0) 24.8 ( 4.5) 17.9 ( 6.3) 32.5 ( 7.6) Metal Products 91.5 ( 7.7) 97.8 ( 7.9) 95.6 ( 7.4) 94.7 ( 5.4) Machinery 24.7 ( 8.1) 15.6 ( 5.8) 73.5 ( 6.9) 23.1 ( 9.5) Electrical Machinery 26.8 ( 8.5) 40.2 (12.2) 37.4 (13.5) 41.9 (12.0) Transport Equipment 3.8 ( 1.7) 4.8 ( 1.4) 4.5 ( 2.1) 7.6 ( 2.3) Rail Transport Items 10.8 ( - ) 52.1 ( 0.1) 42.9 ( 0.2) 33.7 ( 0.1) Hosp. & Scient. Equip. 43.8 ( 0.5) 52.3 ( 0.9) 44.6 ( 0.5) 66.9 ( 1.0) Miscellaneous 64.8 ( 6.1) 59.4 (10.7) 56.6 ( 3.3) 85.1 ( 5.3) (100.0) (100.0) (100.0) (100.0) Economic Costs and Benefits 7. As with many policies designed to foster the growth of new entrepreneurship and small firms, the underlying rationales and objectives are often confusing and murky, with the result that perceived benefits are often illusory (or non quantifiable). Furthermore, the costs of particular programs are either not adequately computed and monitored or again, are not amenable to accurate quantification. In addition, the rationale underpinning the various policy measures is often contradictory. For example, with regard to the reservation of procurement of certain items from SSI, there are some that are reserved for production by SSI and some that are not. Presumably for those items that are not reserved for production by SSI, it is considered that both small and large firms are competitive. Therefore it seems strange that procurement reservation for the items in question is considered necessary to support "weak" SSI producers. 8. The fiscal (excise tax), price (15% allowed premium), administrative and reservation incentives extended to SSIs with regard to procurement, must stem from the hypothesis that India's SSI sector inherently lacks competitive strength. If this rationale and hypothesis is incorrect than the procurement policies lack logical reason and would be irrelevant. Analysis of this issue is 144 clouded following investigation of how the various departments implement the official policy. The procurement reservation policy states that this reservation is only applicable if all "technical norms" are met. This allows some administrative discretion of individual procurement agencies. Furthermore, anecdotal information suggests considerable vacillation in the use of the price preference policy. The level, if any, of the price premium allowance, is often arbitrary and subjective, depending on the merits of an individual procurement order or tender. One should not be surprised by this, given that individual budget managers would seek to "stretch" and optimize the use of their goods procurement budgets. 9. Table 3, below provides some information on the extent of purchase of goods that are reserved for procurement from SSIs. The reservation policy explains about one third of total Central Government SSI purchases, over the past five.years, and hence about 3.5% of total Central Government purchases. Presumably, the procurement of non reserved items is based upon competitive tender (or the item itself is under prodtiction reservation); it is not known how much of this benefits from a price preference policy or the waiver of excise tax where applicable.3 Table 3 DGSD Procurement of Reserved 881 Item pully Partically Total Unreserved Total Reserved Reserved Reserved SI (Rs. millions) FY 82/83 631.6 180.5 812.1 1,368.3 2,180.4 84/85 678.0 215.8 893.8 1,687.0 2,580.8 86/87 855.4 87.9 943.2 1,901.7 2,844.9 88/89 1,189.2 46.9 1,236.1 1,965.1 3,201.2 89/90 1,195.8 - 1,195.8 2,173.0 3,368.8 (in %) FY 82/83 29.0 8.2 37.2 62.8 100.0 84/85 26.3 8.4 34.6 65.4 100.0 86/87 30.1 3.1 33.1 66.8 100.0 88/89 37.1 1.5 38.6 61.4 100.0 89/90 35.5 - 35.5 64.5 100.0 s/ It should be noted that the waiver of excise tax, should, in theory, confer no special advantage for smaLt firms, as the excise tax that is included in the price of the product is paid to the government. In practice however it could have an impact, as the Central Government does not retain aRl the Central Excise cottected, and of course, expenditure allocations amongst various departments do not reflect reimbursements for excise taxes paid. 145 Sumary and Recomendation 10. For certain products produced by the small scale sector, procurement by the public sector can represent a major market, particularly if the item is reserved for SSI. However the overall impact of the incentive and special privilege structure on the growth and viability of the small scale sector is not large. The price preference policy is not universally applied, and even if it were so, it would mean that purchasos of goods by DGS&D for the Central Government are only about US$ 16.3 m (Re.325.0 m) higher than they need to be (about 1.1% of purchases in FY 88/89). This is not to imply that the price preference policy should continue. It should not, particularly at a time when all fiscal expenditures will be under pressure. But, the fiscal subsidy elements of procurement by the Central Government of SSI output is quite small and neglible. 11. Also, the procurement reservation is distortionary and represents an implicit tax for the rest of society, however the magnitude of the tax is not considered large. It may inhibit the efficient growth o'f output of certain products, however the production reservation for a certain SSI product, is much more distortionary and inefficient. Again, this is not to imply that the procurement reservation should remain; it should be abolished, given that in most cases it is redundant (when it mirrors production reservation), results in lower quality items and adds to administrative costs. Much more could be achieved in ensuring the healthy growth of new and small scale firms by making the procurement procedures more simple and transparent. 146 APPENDIX A6 ANNEXURE 1 CLASSIFICATION OF GOVERNMENT PURCHASE, 1979-1990 Group 1: Item which can be purchased from large scale units. Group II: Items which can be purchased from large scale units, but there is scope for sub-contracting ancillaries and components to small scale units. Group III: Items which can be purchased both from the large scale and small scale units. Group IV: Items which are ieserved for exclusive purchase from the small scale units. Group V: Items which are largely reserved for the small sector - up to 75% of requirements. Group VI: Items which are reserved for the small sector up to 50% of requirements. 147 APPENDIX A6 ANNEXURE 2 GROUP IV ITEMS RESERVED FOR EXCLUSIVE PURCHASE FROM SNALL SCALE INDUSTRIAL UNITS 1. Animal Driven Vehicles (Civil requirements only) 2. Anklets Web Khaki 3. All Badges, Cloth, Embroidered and Metal 4. Attache Cases 5. Aluminium Utensils 6. Ammeters/Ohm Meters 7. Automobile Read Lights (for Civil requirements only) 8. Augars (Carpenters) 9. ACC/ACSR Conductors upto 19. Strand 10. Absorbent Cotton 11. Agricultural Implements: (a) Hand Operated Tools & Implements (b) Animal Driven Implements 12. Bags/Ice Head (Civil requirements only) 13. Bandage Cloth 14. Barbed Wire 15. Basket Cane, Basket Bamboo (Procurement can also be made from State Handicraft Corporation) 16. Belt Leather & Strips 17. Benzol Banzoate 18. Blacksmith Hearth 19. Boot Polish 20. Bone Meal 21. Belts Leather 22. Boxes made of Metal (Civil requirement only) 23. Boxing Boots 24. Boots & Shoes of all types excluding Canvas Shoes 25. Brass Dampers 26. Brass Padlocks 27. Brief Cases 28. Brooms 29. Buckets 30. Brushes 31. Beam Scales (Upto 30 kgs.) 32. Battery Chargers Engine driven only 33. Buttons Metal 34. Blotting Paper 35. Blow Moulded Containers 36. Cans (made up of G.I. Sheets for Milk and Measuring) 37. Cash Bags 38. Caps Cotton 148 39. Caps Woollen 40. Caps Waterproof 41. Casing and Capping 42. Ceiling Roses upto 15 amps. 43. Centrifugal Roses upto 15 amps. 44. Copper Sulphate 45. Coir Mattresses and Mattings 46. Chains Lashing 47. Chappals and Sandals 48. Coir Fibre and Coir Yarn 49. Community Receivers including T.V. Receiver 50. Cone & Valves (for water fitting only) 51. Conduit Pipes (Metallic) 52. Cotton Wool (Non-absorbent) 53. Cotton Hosiery 54. Cotton Cord Twine 55. Crates wooden 56. Cumblies 57. Curtains Mosquito (Civil requirements only) 58. Coir Mattresses & Cushions 59. Copper Napthenate 60. Corrugated Board Paper 61. Centrifugal Pumps-suction & delivery 150 mm X 150 mm 62. Crucibles upto & including 31 kgs. Capacity 63. Chaff Cutter Blades 64. Distribution Boards upto 15 amps. 65. . Drums & Barrels 66. Domestic Utensils other than Stainless Steel 67. Domestic Electric Appliances; Toaster Electric, Electric Irons, Hot Plates, Electric Mixers and Grinder, Juice Extractors, Electric lighters, Electric ovens 68. Dusters cotton all types except the items required In Khadi 69. Dust Shield Leather 70. Dust Bins 71. Domestic (Hou&e Wiring) P.V.C. Cables and Wires (Aluminium conforming to the prescribed ISI specifications and upto 10.00 mm sq. nominal cross section. However, this would not be applicable to Defence requirement) 72. Electric Call Bells 73. Electric Buzzers 74. Electric Soldering Iron 75. Eyelets 76. Expanded Metal 77. Electric Transmission Line Hardwares Like Steel Cross Bars, Cross Arms Clamps, Arching Arms, Brackets etc. 78. Exhaust Mufflers (except in the case of original equipment manufacturers) 79. Films Spools & Cans 80. Football Boots 81. Film Polythene 82. French Polish 149 83. Garments (Civil requirements only) 84. Gas Mantles 85. Gauze Cloth - 86. Ghamellas 87. G.I. Pad Locks 88. G.I. Buckets 89. G.I. Bath Tubs 90. Glass Ampoules 91. Gauze Surgical all types 92. Gun Metal Bushes 93, Gun Cases 94. Graphite Crucibles upto No.200 95. Grease Nipple & Grease Guns 96. Glue 97. Gum Tapes 98. Hand Drawn Carts of all types 99. Handles Wooden and Bamboo. (Procurement can also be made from State forest Corpn. and State handicraft Corpn.) 100. Hand Lamps 101. Hand Numbering Machines 102. Hair Passam Wool 103. Hand Gloves 104. Hand Presses 105. Hide and Country Leather of all types 106. Horse & Mule Shoes 107. Hob Nails 108. Holdalls 109. Hypodermic Needles 110. Invalid Wheeled Chairs 111. Insecticides dust and Sprayers (Manual only) 112. Iron Clad switches (upto 30 Mph.) 113. Keys Wooden 114. Kit Bags 115. Kodalis 116. Kullahs 117. Laces Leather 118. Lint Plain 119. Lantern Posts & Bodies 120. Lathies 121. Lamps Signal 122. Latex Foam Sponge 123. Lamp Holders 124. Leather Bags 125. Leather Boxes 126. Leather Harness 127. Leather Washers 128. Low cost Radio (medium wave band community Radio Receivers to ISS TS-705, 706, 1936) 129. L.T. Porcelain Insulators and Fuse Grips 130. Magnesium Sulphate 131. Machine Screws 132. Metal clad Switches 150 133. Mail bags (Canvas, Dossuti & Jute) 134. Manhole covers 135. Metal Polish 136. Metric Weights 137. Miniature Bulbs (for torches only) 138. M.S. Plate Washers 139. Machine Shop Vices 140. Nail Tip Heel Rustless 141. Nail Cutters 142. Newar 143. Oil Stoves (Wick stoves only) 144. Ordinary Bench Vices 145. Ovens Electric (Domestic type) 146. Paper Conversion Products, Paper Bags, Envelopes, Ice-Cream Cups, Paper Cups & Saucers 147. Paint Remover 148. Pillows (Cotton) 149. Patient Coats & Pyjamas 150. Plaster of Paris 151. Postal Lead Seals 152. Piles Fabric 153. Plugs 154. Pouches 155. Postal Weighing Scales 156. Pumps Hand 157. P.V.C. Footwears 158. Polythene Bags 159.: Palm Rose Oil 160. Plastic Canes 161. Playing Cards 162. Quilts Razais (Cotton) 163. Rags cotton (Civil requirement only) 164. Railway Platform Drinking Water Trolleys (Civil requirements only) 165. Razors 166. Rubber Balloons 167. Rivets of all types (including bifurcated) 168. Rolling Shutters 169. Room Coolers (Desert type) 170. Scientific laboratory Glasswares (Barring sophisticated items) like Beaker Burette, Pipettee, Conical Flasks, Round flasks, Measuring Cylinders, Filter Funnels, Regent Bottles 171. Squirrel Cage Induction Motors up to and including 10 Kw 440 Volts 3 Phase 172. Stonware Jars 173. Sanitary Towels 174. Scap Yellow 175. Soap Liquid 176. Soap Soft 177. Stapling Machines 178. Steel Wool 179. Spectacle Frames 180. Sodium Silicate 151 181. Surgical Gloves (except Plastic) 182. Sanitary Plumbing Fitting: Toilet Shelf, Soap Trays, Robe Hooks, Towel Rails, Toilet Paper Holders, Laboratory Sinks, Drain Boards, Mosaic Wash Basins, Wall Hung Closet, Wall Hung Bidets, Taps, Stop Cocks, Knobs, Spouts, Waste Bottles, Ball Cocks, Ball Mixers, Bath Showers 183. Snap Fasteners (excluding 4 PCS ones) 184. Safety Matches 185. Scissors Cutting (Ordinary Scissors) 186. Shoe Laces 187. Sign Boards Painted 188. Shellac 189. Skin Sheep all types 190. Skiboots and shoes 191. Soles Leather 192. Soap Washing or Laundry (Civil requirements only) 193. Sockets f I 194. Spiked Boots 195. Steel Racks 196. Steel Stools 197. Steel Trunks 198. Stockinette 199. Stone Curry & Stone Curry Rollers 200. Suitcase 201. Steel Desks 202. Shelves Steel 203. Silk Ribbon 204. Street Light Fittings 205. Steel Windows and Ventilators 206. Student Microscopes 207. Standard Wire 208. Safety Pins (and other similar products like Paper Pins, Staple Pins etc.) 209. Tacks Metallic 210. Cotton Tapes & Laces 211. Tarpaulines (Civil requirements only) 212. Teaks fabricated Round Blocks 213. Tentage Civil/Military & Salitah Jute for Tentage 214. Tin Trays 215. Tip Boots 216. Tent Poles 217. Tin Cans unprinted upto 4 gallons capacity (other than Cans OTS) 218. Tyres & Tubes (Cycles) 219. Tiles 220. Toilet Rolls 221. Transistorised Insulation Testers 222. Umbrellas 223. Utensils Cooking including Stainless Steel Utensils except spoon Dessert 224. Wooden Shelves 225. Wood Wool 226. Wooden Plugs 152 227. Wooden Ammunition Boxes 228. Wheel Barrows 229. Wicks Cotton 230. Wire Adjustings Screws 231. Wooden Packing Cases of all sizes 232. Wire Nails and Horse Shoe Nails 233. Woollen Hosiery 234. Screws excluding High Tensile 235. Welded Wiremesh 236. Wooden Chairs 237. Waxed Papers 238. Waterproof Papers 239. Wire Netting gauze thicker than 100 mesh size 240. Wire Brushes and Fibre Bruses 241. Wind Shield Wipers (Arms & Blades only) (Except in the case of original Equipment manufacturers) 242. Diesel Engines upto 15 H.P. (Slow Speed) 243. Voltage Stabilisers 244. Paper Tapes (Gummed) 245. Clinical Thermometers 246. Drawing & Mathematical Instruments 247. Aluminium Builders & Hardware Hinges 248. Aluminium Drop/Tower Bolts 249. Zinc Sulphate 250. Nickel Sulphate 251. Steel Measuring Tapes 252. Zip Fastners (Metallic) 253.. Emergency Lamps 254. Electric Flash Guns 255. M.S. Tie Bars 256. Padlocks 257. *Railway Carriage Fans (to the extent of 75% requirement only) Transferred to Group V List 258. Bolts & Nuts (except High Tensile & Other Special Types) 259. Circlips 260. Cloth Sponge 261. Cloth Covers 262. Cotton Cases 263. Cotton Packs 264. Cotton Pouches 265. Cotton Slings 266. Cotton Straps 267. Frogs Bayonets 268. Cotton Bags 269. Cotton Carriers 270. Badges Cloth (including Embroidered) 271. Sleeping Bags 272. Wooden Pins 273. Wooden Veneers 274. Mallet Wooden 275. Chrome Tanned (Semi-finished) Buffallow & Cow 276. Rubber Hoses Armoured (Unbraided) 153 277. Rubber Cord 278. Pottassium Nitrate 279. Soap Carbolic 280. Insecticide Fluid 281. Disinfectant Fluid 282. Foot Powder 283. Table Knives (excluding Cutlery) 284. Steel Bedsteads 285. Boxes Kit 286. Badges Metalic 287. Tin Seal Holders 288. Safes meat & Milk 289. Line Equipments 290. Fuse Cut Outs 291. Roof Light Fittings 292. Railway Carriage Light fittings 293. Chokes for Light fitting 294. Ambulance Stretchers 295. Monometers 296. Whistles 297. Dyes : (a) A ZO Dyes (Direct & Acid) (b) Basic Dyes 298. Silk Webbing 299. Lanyard 300. Sodium Nitrate 301.. Lisasorb 302. Funnels 303.. Nails Copper 304. Boxes Tin for Postage Stamps 305. Lockers 306. Letter Boxes Round 307. Trays for Postal Use 308. Cloth Jaconet 309. Cotton Ropes 310. Canvas Products (i) Water Proof Delivery Bags to specn. No.IS-1422/70 (ii) Bonnet Covers & Radiators Mfg. to specn. Drg. Lv.7/NSN/IA/130295 311. Cotton Canvas Bags 312. Waterproof Bags 313. Waterproof Covers 314. Haver Sacks 315. Rubber Tubing (excluding Braided Tubing) 316. Dimethyl Phthalate 317. Dibutyl Phthalate 318. Polythene Pipes 319. ROC Poles prestressed 320. Graphite Crucibles (upto No.500) 321. Tubular Poles (Rivetted Tubular Poles) 322. Brass Wire 323. Measuring Tapes and Sticks 324. Claw Bars & Wires 154 325. Shovels 326. Bench Vices 327. Blots Sliding 328. Steel Chairs 329. Valves Metallic 330. Studs (excluding High Tensile) 331. Wire Fencing & Fittings 332. Hings (other than Door Fittings) 333. Irons Dhobi 334. Happs & Staples 335. Horse Clipping Machines 336. Heaters Convectors upto 2 KW-IS-4283/67 337. Switches Tumbler 338. Fuse Units 339. Link Clips 340. Trolleys 341.. Pulley Wire 342. Cotters 343. *Hose Pipe Clips 50% Reservation. Transferred to Group VI List 344. *Push Cock Gravity Lotach (75% Reservation) transferred to Group V List 345. Microscopes for normal Medical use 346. Scales Weighing 347. Castor Oil 348. Linseed Oil 349. Helmets Non-Metallic 350. Wax Sealing 351. Rail Screw 352. Plate Screws 353. Screw Spikes 354. Hydraulic Jacks below 30 ton capacity 355. Other Wooden Boards 356. Rust & Scale preventing/Removing compositions 357. Nylon Stockings 358. Tin Mess 359. Cord Twine Markers 360. Cordages Others 361. Cotton Singlets 362. Cotton Belting 363. Braces 364. Textile Manufactures N.E.C. 365. Wooden Boxes and Cases N.E.C. 366. Chamois Leather 367. Rubberised Garments Cap and Capes etc. 368. Oil Bound Distemper 369. Bituminous Paints 370. Soap Curd 371. Nylon Tapes and Laces 372. Drilling Clay 373. Hand Lamps Railways 374. Privy Pans 375. Bowls 155 376. Metallic Containers and Drums (Not Elsewhere Classified) 377. Taps 378. Brackets other than Railways 379. Pans Lavatory Flush 380. Battery Eliminators 381. Lighting Arresters upto 22 Kv 382. Lubricators 383. Hand Pounded Rice (Polished and Unpolished) 384. Honey 385. Palmgur 386. Pappads 387. Biscuits 388. Varnish Black Japan 389. Candle Wax Carriage 390. Wooden box for Stamps 391. Coir Rope, Hawserlaid 392. Equipment.Comouflage Bamboo Support 393. Post Picket (Wooden) 394. Wooden Flush Door Shutters 395. Cleansing Powder 396. Napthelene Balls 397. Hammers 398. Screw Drivers 399. Zip Fasteners, Non-metallic 400. Pressure Die Casting upto 0.75 Kg. 401. Glass & Pressed Wares 402. Sluice Vilves 403.. Fire Extinguishers 404. P.V.C. Insulated Aluminium Utensils 405. Enamelled Wares and Enamel Utensils 406. Rakes Ballast 407. Transformer Type welding sets conferming to IS:1291/75 (upto 600 amps.) 408. Pickles and chutney 409. Water tank upto 1500 litres capacity 410. R.C.C. Pipes up to 1200 mm dia 411. Steel Almirah 412. PVC Pipes upto 110 mm (Earlier included in group V list) *Items at S.Nos.257, 344 and 343 stand transferred from Group IV list to Group V & VI lists respectively. 156 GROUP IV PART II ITEMS RESERVED FOR PURCHASE FROM THE HANDICRAFT SECTOR a 1. Woollen Carpets, (a) Hand Knitted Carpets Rugs, Druggets etc. (b) Rugs Hand made (c) Druggets Hand made (d) Namdahs Hand made (e) Matts & Mattings Hand made 2. Carpets, Rugs and (a) Floor coverings Durries of Cotton 3. Painting, Drawings (a) Paintings etc. executed by Hand (b) Drawings 4. Papier Mache (a) Pen and Pencil Articles Containers (b) Flower Vases (c) Boxes (d) Lamps 157 CROUP IV PART III ITEMS RESERVED FOR PURCHASE FROM ANDLOOM SECTOR 1. Dhoties 2. Sarees 3. Low reed, Pick cloth 4. Lungies 5. Gamchas 6. Cloth of Plain Weave 7. Bed Sheets '8. Bed spreads 9. Bed Covers 10.- Napkins 11. Towels (Honey comb and Ezha Thorthu.) 12. Cotton Crepe 13. Mushroo Cloth 14. Dusters NOTE Such of these items like Dusters, Bed Sheets and Towels etc. as are reserved for Khadi and Village Industries Commission would continue to be purchased from KVIC irrespective of the fact that they are being reserved for Handloom Industry. In the event KVIC is not in a position to supply any of the reserved items may be purchased from Handloom Industry.